Bank of America Securities analyst Jason Gerberry has highlighted both promising aspects and potential concerns in Exelixis's early-phase combination therapy trial for colorectal cancer, maintaining a Hold rating with a $39.00 price target for the company's stock.
The Phase 1 trial, investigating the combination of zanza and atezo in colorectal cancer patients, has demonstrated encouraging initial efficacy signals, with particularly notable results in patients without liver metastasis. However, several factors warrant careful consideration when interpreting these preliminary findings.
Key Trial Findings and Limitations
The study's primary limitation stems from its small sample size of fewer than 20 patients and its uncontrolled design, typical of Phase 1 trials. Additionally, the trial focused exclusively on RAS wildtype patients, while the ongoing Phase 3 study encompasses a broader RAS all-comers population, making direct outcome predictions challenging.
Treatment Combination Dynamics
While the data suggests an additive effect when combining zanza with atezo, the absence of contribution-of-parts testing in competitor trials introduces an element of uncertainty in evaluating the combination's true therapeutic value. This gap in comparative data makes it difficult to fully assess the potential advantages of this specific combination over existing treatment options.
Market Implications
The mixed nature of these early results has led to measured expectations from market analysts. Barclays has aligned with Bank of America's cautious stance, also assigning a Hold rating to Exelixis stock, though with a lower price target of $25.00.
Clinical Development Context
Exelixis, headquartered in Alameda, California, continues to build upon its established oncology portfolio, which includes marketed products such as Cometriq, Cabometyx, and Cotellic. This latest development program represents the company's ongoing efforts to expand its therapeutic offerings in the challenging colorectal cancer space.
The progression of this combination therapy through clinical development will be crucial for Exelixis's oncology pipeline, particularly as the company seeks to address the significant unmet needs in colorectal cancer treatment. Future data from the Phase 3 trial will be essential in determining whether the promising early signals translate into clinically meaningful benefits for a broader patient population.
