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Citi maintains Buy on Exelixis, reiterates $31 target

Published 16-09-2024, 11:58 pm
EXEL
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Monday, Citi reaffirmed its Buy rating on Exelixis (NASDAQ:EXEL) shares with a price target of $31.00. The endorsement follows the presentation of the final results from Exelixis's Phase 3 CABINET study at the European Society of Medical Oncology (ESMO) Congress. The study investigated cabozantinib as a treatment for advanced neuroendocrine tumors (NET).


The company shared the results from the pivotal trial, which indicated a continued improvement in progression-free survival (PFS) for patients. The data also showed positive outcomes across all clinical subgroups that were part of the study. These findings have been published in the New England Journal of Medicine (NEJM), providing additional validation for the research.


This development comes after the U.S. Food and Drug Administration (FDA) accepted a supplemental New Drug Application (sNDA) for cabozantinib last month. The acceptance of the sNDA is a step toward potentially expanding the treatment's label to include NET, with a Prescription Drug User Fee Act (PDUFA) goal date set for April 3, 2025.


Exelixis's stock is traded on the NASDAQ under the ticker EXEL. The company's focus on the development and commercialization of cabozantinib for various cancer indications has been a point of interest for investors and analysts alike.


The latest findings and the potential for label expansion are significant milestones for Exelixis as it continues to advance its pipeline and seek to provide new treatment options for patients with cancer.


In other recent news, Exelixis Inc . has made significant strides in several areas. The company's phase 3 CABINET trial showed promising results, with cabozantinib showing significant improvement in progression-free survival for patients with advanced neuroendocrine tumors.


These findings were presented at the European Society for Medical Oncology Congress and concurrently published in the New England Journal of Medicine.


Exelixis has also maintained its Buy rating from several firms, including H.C. Wainwright, Citi, BofA Securities, and Truist Securities. This follows the presentation of results from the Phase 3 CONTACT-02 trial, which demonstrated a significant improvement in progression-free survival for patients with metastatic castration-resistant prostate cancer.


The company's financial performance has been robust, with second-quarter revenues reaching $637.2 million, largely driven by cabozantinib, which contributed $437.6 million. Additionally, Exelixis's diluted net income of $0.77 per share notably surpassed earlier projections.


Exelixis is also awaiting a decision on a patent dispute over Cabometyx, which will determine the drug's market exclusivity period. This is a crucial development for the company's financial outlook. Furthermore, the company's supplementary New Drug Application for cabozantinib in the treatment of neuroendocrine tumors has been accepted by the FDA, with a target action date set for April 2025.


InvestingPro Insights


Following the positive reception of Exelixis's recent study results and the subsequent Buy rating from Citi, a look at the latest InvestingPro data provides further context for investors. Exelixis holds a market capitalization of approximately $7.78 billion, reflecting the company's significant presence in the biopharmaceutical space. The company's P/E ratio stands at 23.74, with an adjusted P/E ratio for the last twelve months as of Q2 2024 at 20.67, indicating a potentially favorable valuation relative to its earnings.


InvestingPro Tips highlight that Exelixis has been actively engaging in share buybacks, underscoring management's confidence in the company's value. Additionally, the company maintains a robust financial position, holding more cash than debt on its balance sheet, which is a reassuring sign for investors concerned about financial stability. These strategic moves, coupled with the expectation of net income growth this year, could signal continued positive momentum for Exelixis.


For those seeking further insights, InvestingPro offers additional tips, including an analysis of Exelixis's shareholder yield and liquidity position, which can be accessed at https://www.investing.com/pro/EXEL. With 14 more InvestingPro Tips available, investors can gain a comprehensive understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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