Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Exelixis Sees Success in Melanoma Treatment With Drug Combination

By

Partnered with Roche-Genentech, Exelixis should be able to charge more than GlaxoSmithKline for its Melanoma treatment.

PrintPRINT
This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Melanaoma patients with a specific mutant form of melanoma got some good news this morning when Exelixis (NASDAQ:EXEL) and partner Roche-Genentech (OTCMKTS:RHHBY) announced positive data on the combination of cobimetinib and vemurafenib (Zelboraf) for BRAF-mutant melanoma tumors. There are few details so far, but the companies announced that the data were positive.

GlaxoSmithKline (NYSE:GSK) already has a similar combo on the market, but its Phase III data presented at ASCO in June were underwhelming -- not statistically or clinically significant. So, I expect the cobimetinib and vemurafenib combination to do significantly better in the marketplace for these patients.

There has been much excitement in melanoma recently with immuno-oncology drugs like ipilimumab and others. These so-called checkpoint inhibitors are important, but for these patients with the BRAF mutation, the cobimetinib and vemurafenib combination will be used as a first line treatment given its high response rates (as seen in the earlier stage trials). Then, patients will go on the checkpoint inhibitors at failure. This will especially b true in the community oncology setting -- where the big majority of patients are treated -- since the side effects for checkpoint inhibitors can be very nasty.

Exelixis has a high short interest, so it should be an interesting morning in the stock. Exelixis has a fifty-fifty co-promote/co-marketing deal with Roche-Genentech in the US, and Roche pays Exelixis low-teen royalties for overseas sales, so the economics for Exelixis are attractive.

GlaxoSmithKline charges $16,000 per month for its combination. I would expect Roche and Exelixis to charge a little higher since their data should be meaningfully better.

Twitter: @AlpineBV_Miller

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE