Exelixis, Inc. (NASDAQ:EXEL) has lost 55% of its share prices after the release of COMET-1, phase 3 pivotal trials, which were unable to meet the primary endpoint of indicating higher survival rate in patients suffering from prostate cancer.
According to the CEO of Exelixis, Inc. (NASDAQ:EXEL), Michael M. Morrissey,
“We are very disappointed that COMET-1 did not meet its primary endpoint of extending overall survival in men with mCRPC.” He further added, “We remain focused on the development program for cabozantinib beyond mCRPC, including the ongoing METEOR and CELESTIAL phase 3 pivotal trials, from which we expect top-line data in 2015 and 2017, respectively.”
Exelixis, Inc. (NASDAQ:EXEL) further said that the company would reduce its existing workforce and might even cut 70 personnel out of the existing 160 employees. Staff reduction is likely to help the company in focusing towards impact of cabozantinib over the other cancer forms. Cabozantinib has received approval from the FDA, it is available under the brand name of Cometriq, and it is used for the treatment of thyroid cancer.
According to the trial results, patients treated with cabozantinib had an overall survival period of 11.0 months as compared to the prednisone arm’s overall survival of 9.8 months. Similarly, results for progression-free survival (PFS) matrix were insignificant to conclude any sort of positive response in the patients. For patients treated with cabozantinib, average PFS stayed at 5.5 months whereas it was 2.8 months for the prednisone arm.
With the failed trials and slide in its annual revenue, Exelixis, Inc. (NASDAQ:EXEL) is facing an acute financial crisis and investor mistrust. Further, 50% of drop in its share prices indicates an outright implosion that might elevate the troubles for Exelixis.
This article has been written by Prakash Pandey.
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