Exelixis (EXEL): Better Than Expected Results From cabozantinib Drive A PT Increase - Leerink

Leerink Partners analyst, Michael Schmidt. reiterated his Outperform rating on shares of Exelixis (NASDAQ: EXEL) after the company reported strong 2Q16 results driven by cabozantinib (Cometriq, Cabometyx) product sales which significantly exceeded Street expectations. He is increasing his Cabometyx forecast in renal cell carcinoma (RCC), reflecting a faster/steeper launch trajectory near term and an increased peak opportunity long term, resulting in a higher price target of $12 (from $10).

The analyst's Outperform rating is based on the thesis that recently FDA approved Cabometyx ("Cabo") is well positioned to capture significant market share in the treatment of renal cell carcinoma (RCC), while expectations for Cotellic (approved in BRAF+ melanoma) are only modest but could drive significant value. Potential label extension opportunities for Cabo could drive further upside.

For an analyst ratings summary and ratings history on Exelixis click here. For more ratings news on Exelixis click here.

Shares of Exelixis closed at $9.39 yesterday.

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