BMO Capital Downgrades Exelixis to Market Perform

Analyst Notes Limited Upside in 2025 for Exelixis

BMO Capital has recently downgraded Exelixis to Market Perform from Outperform, with a price target of $40, up from $36. The main driver of this decision is the recent ruling in the MSN II litigation case for cabozantinib patents. The judge ruled that Exelixis’ ‘349 patent is not invalid, but MSN’s ANDA is not infringing. This has led the analyst to see limited upside to the story in 2025 beyond zanzalintinib’s readout in colorectal cancer.

Positive Outlook for Zanzalintinib’s Probability of Success

The firm has raised its target on zanzalintinib’s probability of success in colorectal cancer, now pegging it at 50%. However, the success of the trial is seen as “a toss-up” given the history of cabometyx’s combination with Tecentriq in this indication. The analyst remains cautious about the potential outcome.

How Will This Affect Me?

As an investor in Exelixis, the downgrade from BMO Capital may cause some uncertainty about the future performance of the stock. It is important to stay informed about any developments in the company and the pharmaceutical industry as a whole to make well-informed investment decisions.

How Will This Affect the World?

The impact of BMO Capital’s downgrade on Exelixis may have ripple effects in the pharmaceutical industry, affecting investor sentiment towards other companies in the sector. It highlights the importance of patent litigation and the risks involved in drug development and commercialization.

Conclusion

In conclusion, BMO Capital’s downgrade of Exelixis reflects the evolving landscape of the pharmaceutical industry. Investors should continue to monitor developments in the company and industry to navigate the changing market conditions.