Should Investors Consider This Biotech Takeover Target?
Exelixis (NASDAQ: EXEL), founded in 1994, is a commercial stage biotech company with U.S. Food and Drug Administration-approved drugs to treat advanced cases of thyroid, kidney, and liver cancer. Its lead drug goes by the medical name of cabozantinib, but uses the marketing brand names of Cabometyx and Cometriq. Exelixis' immediate focus is in expanding the uses of these medications to treat the earlier stages of its targeted cancers. But the biotech might also be thinking about getting scooped up in a potential acquisition deal one day. Should you buy shares of Exelixis before that happens?
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The company's goals for expanding indications are largely being pursued in partnership with rival drug companies, with the objective of creating combination therapies between cabozantinib and other cancer drugs. The best and most successful such partnership to date has been with Bristol Myers Squibb (NYSE: BMY) and its lung cancer drug, Opdivo. In October, Exelixis announced that the FDA granted priority review of this promising new combination treatment option, after earlier positive results from a phase 3 trial for advanced cases of kidney cancer. The FDA's decision on approval is estimated to arrive on or around Feb. 20, 2021. A thumbs up from the FDA could be a significant boost to revenue growth (and perhaps a positive catalyst for Exelixis' stock price). Trial results showed the drug was far superior to currently marketed competitors in terms of improved survival rates and tolerability.
Source Fool.com
