Exelixis’ cabozantinib approval ‘certainly positive,’ says Citi

Exelixis (EXEL) on Wednesday announced that the Food and Drug Administration has approved cabozantinib, or Cabometyx, for the treatment of unresectable, locally advanced or metastatic pancreatic neuroendocrine tumors and extra-pancreatic NET in patients ages 12 or older, Citi analyst David Lebowitz tells investors in a research note. The label expansion, which was based on progression-free survival results in the placebo-controlled Phase 3 CABINET trial, which showed a median increase in PFS over placebo of 9.4 months for pNET and 4.5 months for epNET, marks the sixth FDA approval for Cabometyx in the U.S., the firm says. The approval is “certainly positive” for the stock, but Citi notes that lack of clarity surrounding the size of the market opportunity in NET, and made no change to its Buy rating or $45 price target