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Exelixis Inks Partnership with Takeda for Cabometyx in Japan
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Exelixis, Inc. (EXEL - Free Report) announced that it has entered into an exclusive licensing agreement with Japan-based Takeda Pharmaceutical Company Limited for the commercialization and clinical development of Cabometyx (cabozantinib) in the country.
A look at Exelixis’ share price movement over the past one year shows that the stock has outperformed the Zacks classified Medical-Biomedical/Genetics Drugs industry. Specifically, Exelixis’ stock shot up 301.8% during this period, while the industry lost 7.8%.
Shares of Takeda, on the other hand, were down 12.1%, comparing unfavorably with the 10.1% decrease witnessed by the Zacks classified Medical Drugs industry.
As per the terms of the agreement, Takeda will acquire the exclusive commercial rights to Cabometyx, including all potential future indications, in Japan. In exchange, the company will pay an upfront payment of $50 million to Exelixis.
In addition, Exelixis is eligible to receive $95 million as development, regulatory and first-sales milestones for the first three planned indications. Also, the company will receive royalties on sales by Takeda.
Note that Cabometyx, a tablet formulation of cabozantinib, was approved in the U.S. in Apr 2016 for the treatment of patients with advanced renal cell carcinoma (RCC) who have received prior anti-angiogenic therapy. The drug gained approval in the EU in Sep 2016 for the treatment of advanced RCC in adults who have received prior vascular endothelial growth factor (VEGF)-targeted therapy.
Cometriq, the capsule form of cabozantinib, is approved in the U.S. for progressive, metastatic medullary thyroid cancer (MTC) and in the EU for in adults with progressive, unresectable locally advanced or metastatic MTC.
We remind investors that in Dec 2016, Exelixis amended its exclusive licensing agreement with its European partner, Ipsen, for Cabometyx. Under the amendment, Ipsen will gain the commercialization rights in Canada where it has an established presence. The original agreement was signed in Feb 2016, whereby Ipsen had obtained exclusive commercialization rights for current and future indications outside the U.S., Canada and Japan.
Exelixis is developing cabozantinib in a broad development program comprising over 45 clinical studies across multiple indications including advanced RCC, bladder cancer, colorectal cancer, non-small cell lung cancer and endometrial cancer. Going forward, we expect investors to focus on further updates on cabozantinib by the company.
Zacks Rank & Key Picks
Exelixis currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Sucampo Pharmaceuticals, Inc. and Anika Therapeutics Inc. (ANIK - Free Report) . While Sucampo sports a Zacks Rank #1 (Strong Buy), Anika is a Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunesis’ loss estimates narrowed 5.06% and 8.80% for 2016 and 2017, respectively, over the past 60 days. The company recorded a positive earnings surprise in three of the last four quarters, the average being 0.54%.
Anika’s earnings estimates for 2016 and 2017 were up 3.9% and 0.5%, respectively, over the last 60 days. The company recorded a positive earnings surprise in each of the last four quarters, the average being 33.14%.
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Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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Exelixis Inks Partnership with Takeda for Cabometyx in Japan
Exelixis, Inc. (EXEL - Free Report) announced that it has entered into an exclusive licensing agreement with Japan-based Takeda Pharmaceutical Company Limited for the commercialization and clinical development of Cabometyx (cabozantinib) in the country.
A look at Exelixis’ share price movement over the past one year shows that the stock has outperformed the Zacks classified Medical-Biomedical/Genetics Drugs industry. Specifically, Exelixis’ stock shot up 301.8% during this period, while the industry lost 7.8%.
Shares of Takeda, on the other hand, were down 12.1%, comparing unfavorably with the 10.1% decrease witnessed by the Zacks classified Medical Drugs industry.
As per the terms of the agreement, Takeda will acquire the exclusive commercial rights to Cabometyx, including all potential future indications, in Japan. In exchange, the company will pay an upfront payment of $50 million to Exelixis.
In addition, Exelixis is eligible to receive $95 million as development, regulatory and first-sales milestones for the first three planned indications. Also, the company will receive royalties on sales by Takeda.
Note that Cabometyx, a tablet formulation of cabozantinib, was approved in the U.S. in Apr 2016 for the treatment of patients with advanced renal cell carcinoma (RCC) who have received prior anti-angiogenic therapy. The drug gained approval in the EU in Sep 2016 for the treatment of advanced RCC in adults who have received prior vascular endothelial growth factor (VEGF)-targeted therapy.
Cometriq, the capsule form of cabozantinib, is approved in the U.S. for progressive, metastatic medullary thyroid cancer (MTC) and in the EU for in adults with progressive, unresectable locally advanced or metastatic MTC.
We remind investors that in Dec 2016, Exelixis amended its exclusive licensing agreement with its European partner, Ipsen, for Cabometyx. Under the amendment, Ipsen will gain the commercialization rights in Canada where it has an established presence. The original agreement was signed in Feb 2016, whereby Ipsen had obtained exclusive commercialization rights for current and future indications outside the U.S., Canada and Japan.
Exelixis is developing cabozantinib in a broad development program comprising over 45 clinical studies across multiple indications including advanced RCC, bladder cancer, colorectal cancer, non-small cell lung cancer and endometrial cancer. Going forward, we expect investors to focus on further updates on cabozantinib by the company.
Zacks Rank & Key Picks
Exelixis currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Sucampo Pharmaceuticals, Inc. and Anika Therapeutics Inc. (ANIK - Free Report) . While Sucampo sports a Zacks Rank #1 (Strong Buy), Anika is a Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunesis’ loss estimates narrowed 5.06% and 8.80% for 2016 and 2017, respectively, over the past 60 days. The company recorded a positive earnings surprise in three of the last four quarters, the average being 0.54%.
Anika’s earnings estimates for 2016 and 2017 were up 3.9% and 0.5%, respectively, over the last 60 days. The company recorded a positive earnings surprise in each of the last four quarters, the average being 33.14%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>