Exelixis, Inc. (EXEL) Message Board

Sponsor

From: mopgcw	6/9/2006 8:50:03 AM
	of 892

mstar: Exelixis EXEL presented data on its three most advanced experimental cancer drugs at this year's meeting of the American Society of Clinical Oncology (ASCO), and we believe that the firm remains on track with its ambitious development schedule. Although all three drugs--XL999, XL647, and XL880--had encouraging Phase I data, prospects for these drugs are still highly uncertain, as the trials were small and included patients with a broad range of cancers. XL999 is currently in Phase II, and XL647 and XL880 are poised to start Phase II trials shortly; we believe that data from these trials will be released late this year or early next year and will help define each drug's potential. Because we had already assumed that all three drugs would reach Phase II trials in our probability-adjusted sales estimates, and we're maintaining our fair value estimate of $10 per share. Exelixis has also made progress in its non-cancer pipeline and collaborative agreements. XL784, Exelixis' first proprietary drug to reach development, recently entered Phase II trials for diabetic nephropathy. The company also continues to profit from the 2004 acquisition of X-Ceptor Therapeutics, and has received almost $50 million in upfront payments from collaborators relating to X-Ceptor's cardiovascular and metabolic disorder research.