Jefferies has two ‘contradictory’ conclusions after Exelixis abstract release

After the American Society of Clinical Oncology released an abstract on data for zanzalintinib alone or in combination with atezolizumab in patients with refractory metastatic colorectal cancer, Jefferies comes to two “preliminary and contradictory” conclusions. At this point, the firm is not seeing clear safety and efficacy differentiation between the zanzalintinib combo and cabometyx plus atezolizumab, albeit with a very low number of patients, but it continues to feel positive that zanzalintinib will be successful in its Phase 3 colorectal cancer trial set to read out later this year, the analyst tells investors. The firm has a Buy rating and $42 price target on Exelixis (EXEL) shares, which are down $2.99, or 8%, to $33.44 in afternoon trading following last night’s ASCO GI abstract release.