Key insights
- Exelixis presented positive subgroup analysis data for Cabometyx in neuroendocrine tumors, showing significant reductions in disease progression or death. This news, coupled with upward earnings revisions and an attractive valuation, suggests potential positive sentiment for the company's stock. While not a direct market-moving macro event, strong clinical trial results for a mid-cap biotech can contribute to sector-specific investor confidence and potentially influence broader healthcare sector performance.
ALAMEDA, Calif. - Exelixis, Inc. (NASDAQ:EXEL) presented subgroup analysis results from the phase 3 CABINET trial at the American Society of Clinical Oncology Annual Meeting held from May 29 to June 2 in Chicago, according to a press release statement. The $12.7 billion biopharmaceutical company’s stock is trading at $50.48, near its 52-week high of $52.96, reflecting investor confidence in its oncology pipeline.
The analysis showed Cabometyx reduced the risk of disease progression or death by 74% in patients with non-functional advanced neuroendocrine tumors and by 60% in patients with functional advanced neuroendocrine tumors, compared to placebo.
The CABINET study enrolled 298 patients with locally advanced or metastatic pancreatic or extra-pancreatic neuroendocrine tumors, randomized 2:1 to receive Cabometyx 60 mg daily versus placebo. Of these patients, 179 had non-functional tumors, 74 had functional tumors, and 45 had unknown functional status.
In patients with non-functional tumors, median progression-free survival was 9.4 months with Cabometyx versus 3.1 months with placebo. The hazard ratio was 0.26 with a confidence interval of 0.17-0.41. In patients with functional tumors, median progression-free survival was 12.7 months with Cabometyx versus 5.4 months with placebo, with a hazard ratio of 0.40 and confidence interval of 0.20-0.82.The positive trial results come as 8 analysts have revised their earnings upwards for the upcoming period, according to InvestingPro data. The company trades at a P/E ratio of 16.9 with a PEG ratio of 0.41, suggesting attractive valuation relative to growth. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering EXEL and 1,400+ other US equities.
The most frequent grade 3/4 adverse events with Cabometyx in patients with functional tumors were hypertension at 21% and diarrhea at 9%. In non-functional tumors, hypertension occurred in 21% and fatigue in 18%.
Cabometyx received U.S. and EU approvals last year for treatment of previously treated advanced neuroendocrine tumors. The CABINET trial was sponsored by the National Cancer Institute and conducted by the Alliance for Clinical Trials in Oncology.
In other recent news, Exelixis Inc. reported strong financial results for the first quarter of 2026, exceeding both earnings and revenue projections. The company achieved an earnings per share (EPS) of $0.87, surpassing the anticipated $0.77, resulting in a 12.99% surprise. Revenue for the quarter reached $611 million, slightly above the forecasted $608.95 million. In addition, Exelixis announced a clinical development collaboration with Merck for a phase 3 trial targeting resected stage II/III colorectal cancer. Under this agreement, Exelixis will sponsor the STELLAR-316 pivotal trial, while Merck will provide its subcutaneous anti-PD-1 therapy, KEYTRUDA QLEX. These developments indicate ongoing strategic initiatives and financial performance by Exelixis.
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