Exelixis (NASDAQ:EXEL) Is Hoping To Make A Comeback through Its Cobimetinib Drug

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News has it that Exelixis (NASDAQ:EXEL) has filed a request in the FDA for the approval its latest cure, Cobimetinib. The drug will be used for the treatment of those patients who have skin cancer, especially those with a melanoma. Investors are optimistic that the shares of the company will go up as soon as it gets the approval from FDA.

It is important to mention here that the stocks of the company were trading as high as $12 per share back in 2011; however, the stocks came to all time lows in 2014 when the company failed to introduce a promised drug in the market. The drug that the company had promised to launch was for Prostate cancer. Many long-term investors have abandoned the company since then.

Market experts are of the opinion that the New Year can turn beneficial for the company if it can just convince the regulatory agency to approve its latest drug. If Exelixis (NASDAQ:EXEL) gets this approval, it will be the first commercial drug of the company. Not only will the revenue base of the company get stronger but the company will also be able to pay off some of its debts in a few months.

But wait. Let us remind you that Exelixis will not be the only company that will be enjoying the profits from the sales of cobimetinib; Roche will also be sharing the profits with Exelixis. Roche is the partner of Exelixis for thus particular drug since the year 2006. The companies will be splitting the profits 50-50; however, once the sales cross $400 million in the region of United States. Exelixis will be sharing 30 percent of the total profits.

If the drug of Exelixis (NASDAQ:EXEL) gets approved, it will be used together with Zelboraf of Roche in order to cure those patients who are suffering from melanoma due to a gene mutation. A combination of these drugs was given to the patients during the third phase of the clinical trials, and the results showed that the combined drug was more effective than Zelboraf alone. The progression survival of those patients who took the combination of both drugs was recorded to be at 9.9 months whereas the progression survival of Zilboraf theraphy was 6.2 months.

Exelixis has filed for a 2 drug approach in the FDA. This way, the treatment will be widely used for melanoma. According to a report released by Exelixis (NASDAQ:EXEL), around 50 percent of the melanomas is caused due to a mutation in BRAF. These figures suggest that, if approved, this drug of Exelixis will be as good as gold.

The stock prices of the company are running quite low these days, but chances are that they will shoot up once the FDA gives its approval. On the last trading day of January 02, 2015, Exelixis (NASDAQ:EXEL) started its stocks at a price of $1.47 and closed at a price of $1.65, after hitting the highest price of $1.70.

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