In a research report released today, Cowen analyst Eric Schmidt reiterated an Outperform rating on shares of Exelixis Inc. (NASDAQ:EXEL), following Friday’s news that the company presented positive results from METEOR, its phase 3 pivotal trial comparing cabozantinib to everolimus in 658 patients with renal cell carcinoma who have experienced disease progression following treatment with a VEGF receptor tyrosine kinase inhibitor.
Schmidt wrote, “We find the detailed results of METEOR highly compelling. Cabozantinib has established the longest PFS in advanced RCC at 7.4 months. Moreover, the median duration of therapy was 8.3 months as the METEOR trial permitted physicians to continue dosing if patients were deemed to benefit. This finding has implications for duration of use in the commercial setting. Furthermore, “Given Sutent is the standard of care in first-line disease, such “second-line Sutent failures” are very common, and cabo performed even better in this subpopulation than it did in the whole.
The analyst concluded, “Following presentation of the full METEOR dataset, we are increasingly confident than cabozantinib can achieve $400-500MM in U.S. sales in this indication.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Eric Schmidt has a total average return of 31.3% and a 51.5% success rate. Schmidt has a 0.5% average return when recommending EXEL, and is ranked #56 out of 3759 analysts.
Out of the 3 analysts polled by TipRanks, 2 rate Exelixis stock a Buy, while 1 rates the stock a Hold. With a return potential of 3%, the stock’s consensus target price stands at $6.