Is Exelixis Stock a Buy?
Biotech specialist Exelixis (NASDAQ: EXEL) has had a rough year in the stock market. On June 28, the company's shares dropped by more than 20% on the heels of unimpressive results from a clinical trial. Clinical setbacks are often to blame when drugmakers experience such steep losses. Still, the market sometimes overreacts to even the slightest hint of negative news. Was the sell-off of Exelixis' shares justified? Let's look a bit closer at the company's recent developments and figure out whether it is worth investing in today.
Exelixis is currently running a phase 3 clinical trial for its crown jewel, cancer medicine Cabometyx, in combination with another cancer drug called atezolizumab in patients with advanced hepatocellular carcinoma (HCC). The study pitted the combo treatment against Bayer's sorafenib. Although the combination of Cabometyx and atezolizumab led to a significant improvement in progression-free survival (PFS), Exelixis announced that the therapy is unlikely to reach its second primary endpoint of overall survival when compared to sorafenib.
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Source Fool.com
