Exelixis ASCO Abstracts Might Not Ease Setback from 2011

After a disappointing end to 2011 regarding its lead drug, Exelixis (EXEL) is looking to bounce back with new data. The company filed an abstract with ASCO showing results from use of cabozantinib in medullary thyroid cancer patients and another abstract on the drug in a Phase II study for prostate cancer.

Exelixis will give nine presentations on cabozantinib at this year’s ASCO conference. In the medullary thyroid cancer study, the drug provided an additional 7.2 months of progression-free survival over a placebo and a 28% response rate.

The drug was also used in a Phase II study of 93 patients with advanced prostate cancer that had spread to bone. The abstract results revealed that 60% of patients had a partial bone scan response, while 70% had reduction of measurable disease, according to TheStreet.com.

Exelixis is struggling to bounce back from a tough end of 2011 when the company saw its stock price cut in half after a regulatory disappointment. In November, Exelixis couldn’t reach an agreement with the FDA regarding Phase III trial for cabozantinib in prostate cancer, according to SeekingAlpha.

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The stock price is languishing at the lower end of its 52-week range, which runs from as low as $3.94 to as high as $11.74.

However, the new data might not be enough for Exelixis. Since the abstracts were released the company’s stock has been on a steady decline. While it started the week over $5, it is now down to $4.62.

The information contained in this article should not be construed as investment advice or as a solicitation to buy or sell any stock.

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