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Exelixis, Ipsen Amend Exclusive Agreement for Cabometyx
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Exelixis, Inc. (EXEL - Free Report) announced that it has amended the exclusive collaboration and licensing agreement with its European partner Ipsen.
Exelixis’s year-to-date share price performance has been much better than that of the Zacks classified Medical Biomed/Genetics industry. The company’s share price jumped 189.3% during this period, while the industry registered a 26.2% decline.
The agreement relates to the commercialization and continued development of 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, wherein Ipsen obtained exclusive commercialization rights for current and future indications outside the U.S., Canada and Japan.
The amendment, however, allows Exelixis to retain rights to Cabometyx in the U.S. and Japan. The company is holding discussions with potential partners for commercial rights in Japan.
Under the agreement, Exelixis will receive an upfront payment of $10 million. The company is also entitled to get regulatory milestones for the approval of cabozantinib in Canada for advanced renal cell carcinoma (RCC) after prior treatment as well as for first-line RCC and advanced hepatocellular carcinoma (HCC), apart from additional regulatory milestones for potential further indications. Moreover, Exelixis will receive tiered royalties on Ipsen’s net sales of cabozantinib in Canada.
We note that Cabometyx was approved in the EU in Sep 2016 for the treatment of RCC in adults following vascular endothelial growth factor (VEGF)-targeted therapy. Ipsen is currently initiating the launch of the drug in the EU, while the regulatory filing in Canada is expected in 2017 with a tentative approval in early 2018. The drug was approved by the FDA in Apr 2016 for the treatment of advanced RCC, who have received anti-angiogenic therapy.
Another product in Exelixis’ portfolio is Cotellic (cobimetinib), approved in combination with Roche Holding’s (RHHBY - Free Report) Zelboraf in the U.S. for the treatment of BRAF V600E or V600K mutation-positive advanced melanoma.
Heska’s earnings estimates increased from $1.13 to $1.35 for 2016 and from $1.38 to $1.53 for 2017 over the last 60 days. The company posted a positive earnings surprise in all of the four trailing quarters with an average beat of 301.64%. Its share price has increased 93.6% year to date.
Vanda’s loss estimates for 2016 narrowed from 62 cents to 52 cents, while its earnings estimates for 2017 increased from 13 cents to 22 cents over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 56.65%. Its share price has surged almost 74.1% year to date.
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Exelixis, Ipsen Amend Exclusive Agreement for Cabometyx
Exelixis, Inc. (EXEL - Free Report) announced that it has amended the exclusive collaboration and licensing agreement with its European partner Ipsen.
Exelixis’s year-to-date share price performance has been much better than that of the Zacks classified Medical Biomed/Genetics industry. The company’s share price jumped 189.3% during this period, while the industry registered a 26.2% decline.
The agreement relates to the commercialization and continued development of 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, wherein Ipsen obtained exclusive commercialization rights for current and future indications outside the U.S., Canada and Japan.
The amendment, however, allows Exelixis to retain rights to Cabometyx in the U.S. and Japan. The company is holding discussions with potential partners for commercial rights in Japan.
Under the agreement, Exelixis will receive an upfront payment of $10 million. The company is also entitled to get regulatory milestones for the approval of cabozantinib in Canada for advanced renal cell carcinoma (RCC) after prior treatment as well as for first-line RCC and advanced hepatocellular carcinoma (HCC), apart from additional regulatory milestones for potential further indications. Moreover, Exelixis will receive tiered royalties on Ipsen’s net sales of cabozantinib in Canada.
We note that Cabometyx was approved in the EU in Sep 2016 for the treatment of RCC in adults following vascular endothelial growth factor (VEGF)-targeted therapy. Ipsen is currently initiating the launch of the drug in the EU, while the regulatory filing in Canada is expected in 2017 with a tentative approval in early 2018. The drug was approved by the FDA in Apr 2016 for the treatment of advanced RCC, who have received anti-angiogenic therapy.
Another product in Exelixis’ portfolio is Cotellic (cobimetinib), approved in combination with Roche Holding’s (RHHBY - Free Report) Zelboraf in the U.S. for the treatment of BRAF V600E or V600K mutation-positive advanced melanoma.
Exelixis currently carries a Zacks Rank #3.
Key Picks in the Sector
A couple of better-ranked stocks in the health care sector include Heska Corp. and Vanda Pharmaceuticals (VNDA - Free Report) . Both of them sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Heska’s earnings estimates increased from $1.13 to $1.35 for 2016 and from $1.38 to $1.53 for 2017 over the last 60 days. The company posted a positive earnings surprise in all of the four trailing quarters with an average beat of 301.64%. Its share price has increased 93.6% year to date.
Vanda’s loss estimates for 2016 narrowed from 62 cents to 52 cents, while its earnings estimates for 2017 increased from 13 cents to 22 cents over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 56.65%. Its share price has surged almost 74.1% year to date.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>