Merck's trial results are better, Exelixis stock price drops

LootboxPhobia · 2026-03-03T06:57:53+00:00

Exelixis Inc. stock price dropped 6.6% on Monday after Merck & Co.'s combination therapy outperformed its single therapy Cabometyx in late-stage kidney cancer trials. Analysts are optimistic about the new therapy's results, believing it could pose competitive pressure on Exelixis, leading to a target price downgrade.

LootboxPhobia

2026-03-03 06:57:53

Abstract generation in progress

Investing.com – Exelixis Inc. (NASDAQ:EXEL) stock fell 6.6% on Monday after Merck announced that its combination therapy outperformed Exelixis’s single-agent Cabometyx in late-stage kidney cancer trials.

Merck’s LITESPARK-011 trial studied the effectiveness of the oral combination of WELIREG (belzutifan) and LENVIMA (lenvatinib) in treating patients with advanced renal cell carcinoma. According to the statement, the combination therapy showed a statistically significant improvement in progression-free survival compared to Cabometyx (cabozantinib), reducing the risk of disease progression or death by 30%.

The stock dropped as much as 9.9 intraday, marking its largest decline since October last year.

UBS analyst Ashwani Verma maintained a neutral rating, commenting that the competitive data for Welireg/Lenvima versus Cabometyx exceeded expectations. With the application already accepted, this added more direct downside pressure. Verma noted that the data is promising and could replace Cabo in second-line kidney cancer treatment.

Royal Bank of Canada Capital Markets analyst Leonid Timashev gave the sector perform rating, stating that the efficacy of the combination therapy in kidney cancer trials appears attractive compared to single-agent Cabometyx. Timashev said emerging data clearly supports belzutifan’s role in second-line treatment, which could pressure Exelixis’s core Cabo business and pose downside risks. RBC lowered its target price from $46 to $43.

Stifel analyst Stephen D. Willey maintained a hold rating, stating that Merck’s belzutifan/lenvatinib combination therapy significantly outperforms Exelixis’s cabozantinib, potentially leading to some loss of market share in the second-line market. Willey added that the trial results further complicate the treatment landscape for clear cell renal cell carcinoma and reduce visibility for cabozantinib sales and belzutifan/zanzalintinib registration and development.

This article was translated with the assistance of artificial intelligence. For more information, see our Terms of Use.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.