BofA Hikes Exelixis, Inc. (EXEL) Target Amid CRC Caution

On Thursday, analysts at BofA Securities raised the price target for Exelixis, Inc. (NASDAQ:EXEL) to $46 from $45, with a Neutral rating. This minor change in the price target, reflecting an upside of nearly 8% from the current stock price, signals the company’s revised evaluation of the Zanza pipeline asset.

The company is all set to begin the STELLAR-311 trial of Zanza in NET, aiming for as many as three new INDs within this year. During the latest earnings call, the management expressed optimism around its Zanza pipeline asset. As the CEO of Exelixis, Inc. (NASDAQ:EXEL),  Michael Morrissey, mentioned:

"We're excited to advance Zanza to the center stage in 2025 as our next oncology franchise opportunity."

The analysts noted the significance of the upcoming readouts for the Zanza asset, renal cell carcinoma (RCC), and colorectal cancer (CRC). Despite the excitement for Zanza, analysts remain cautious about the prospects of the CRC population, which is considered the most critical. They substantially discount its chances of success here, citing that the recent updates to the statistical analysis cast a shadow over the stock’s potential.

Without a breakthrough in the CRC intent-to-treat group, analysts believe that Zanza’s peak sales will be between $500 million and $1 billion in the years ahead.

Exelixis, Inc. (NASDAQ:EXEL) is a California-based biopharmaceutical company that discovers, develops, and markets new cancer solutions. With a focus on oncology, the company has a leading network of drug development, clinical trials, and commercialization of drugs for difficult-to-treat cancer types.

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