Motley Fool Rule Breakers
The drug, XL784, was in testing as a treatment for diabetic nephropathy, which is a form of kidney disease. No study details were released yesterday except that XL784 failed on the primary endpoint of reducing proteinuria (a by-product of abnormal kidney functioning).
XL784 is part of the basket of nine remaining drugs from which GlaxoSmithKline
Only 20% of compounds entering phase 2 testing go on to regulatory approval, according to an oft-cited statistic from a Milken Institute policy brief. We'll find out the data on the failed XL784 study -- and what Exelixis plans to do with the compound once it has finished analyzing the data -- on Nov. 2, when Exelixis presents during the American Society of Nephrology Renal Week.
Sometimes drugs just don't work out like they're supposed to. Thankfully, Exelixis found this out in phase 2 testing rather than in a much more costly phase 3 trial.
Exelixis is an active pick of our market-beating Rule Breakers newsletter. You can check out all our recommendations with a 30-day free trial. GlaxoSmithKline is an active Income Investor pick.
More from The Motley Fool
4 Reasons Exelixis, Inc. More Than Doubled in 2017
A 104% gain last year wouldn't have been possible without lead drug Cabometyx.
The Secret Sauce Behind Exelixis, Inc.'s 12% Move Higher in December
Hint: It has everything to do with lead drug Cabometyx.
Why Exelixis, Inc. Could Be a Gold Mine for Growth Investors
This already well-performing biotech stock could have a lot more climbing to do.