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Why Exelixis Jumped 10% in September

By Rich Duprey – Oct 6, 2020 at 2:23PM

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The biotech was the beneficiary of a string of positive developments.

What happened

Shares of Exelixis (EXEL -0.40%) rose 10% in September, according to data from S&P Global Market Intelligence, after the company announced a series of positive developments throughout the month related to various cancer therapies.

So what

Exelixis is already on track to generate $1 billion in annual sales in 2021 through its primary drug Cabometyx, which is approved to treat first- and second-line renal cell carcinoma as well as advanced hepatocellular carcinoma.

Scientists looking at test tubes

Image source: Getty Images.

It announced mid-month that Cabometyx, along with Bristol-Myers Squibb immunotherapy Opdivo, saw a statistically significant reduction in kidney cancer death risk of 40% compared to Pfizer's Sutent.

Exelixis also announced partnerships with NBE-Therapeutics to develop multiple antibody-drug conjugates (ADCs) to treat cancer and Catalent's Redwood Bioscience to develop multiple ADCs using the latter's proprietary SMARTag site-specific bioconjugation technology.

Now what

Despite the good news, Exelixis stock stumbled soon afterward. After rising to a month-high of around $27 a share, it dropped to below $24 a stub where it continues to trade today.

Exelixis has dozens of clinical trials in process where Cabometyx is used as a monotherapy or combination therapy, which should give the biotech stock plenty of runway for future growth as a leader in renal cell carcinoma.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bristol Myers Squibb. The Motley Fool recommends Exelixis. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Exelixis, Inc. Stock Quote
Exelixis, Inc.
EXEL
$16.29 (-0.40%) $0.07
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$44.48 (0.77%) $0.34
Bristol Myers Squibb Company Stock Quote
Bristol Myers Squibb Company
BMY
$71.75 (1.74%) $1.23
Catalent, Inc. Stock Quote
Catalent, Inc.
CTLT
$79.40 (3.76%) $2.88

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