Shares of biopharmaceutical company Exelixis, Inc. (NASDAQ:EXEL) continued to sink into negative territory Thursday, closing at $12.28, down 8.01%.
The stock traded a volume of 16.99 million shares, and recorded a second consecutive day with sizable losses.
Exelixis is developing and commercializing small molecule therapies with the potential to improve the treatment of cancer.
Exelixis, Inc. (NASDAQ:EXEL) suffers twin jolts
The stock suffered a nearly 21% decline on Wednesday after it was revealed that the dosage of its CaboMetyx drug, being tested jointly with Bristol-Myers Squibb Co (NYSE:BMY)’s Opdivo in a phase 1 trial, had to be reduced due to certain adverse events such as toxicity.
Also, it was reported that a separate trial (phase 1b) of Pfizer’s Inlyta and Merck’s Keytruda, performed on previously untreated patients of kidney cancer, reported a response rate of 67%, and this could be superior to Exelixis’s CaboSun kidney cancer drug.
Yesterday, the stock continued its downward trend.
Exelixis, Inc. (NASDAQ:EXEL) oversold?
However, analyst Michael Schmidt of Leerink Partners felt that the market had unjustly reacted to the news and the selloff was unduly severe.
Schmidt said: “Reiterating OP rating based on our thesis that Cabometyx is well positioned to capture market share in the treatment of RCC, while Street expectations for Cotellic (approved in BRAF+ melanoma) are still only modest and could drive significant value long-term.”
The analyst has a price target on the stock of $15.
Mid-September, Stifel analysts too reiterated their Buy rating on Exelixis, proposing a price target of $12 – $15.
Analysts at S&P Equity Research bumped up their price target from $13.41 to $15.57 in a research report published on Wednesday.
What Next for Exelixis, Inc. (NASDAQ:EXEL)?
All eyes are fixed on October 10, when data from the CABOSUN trial testing Cabometyx against Pfizer Inc. (NYSE:PFE)’s Sutent in first-line kidney cancer patients will be released.