William Blair says Exelixis cabozantinib patent verdict in line with expectation

After Exelixis’ ‘473 patent for composition-of-matter of cabozantinib was upheld and the presiding judge ruled that MSN Pharmaceuticals did not infringe on the ‘776 polymorph patent, William Blair analyst Andy Hsieh said he views the mixed ruling as being within expectations. The ongoing patent litigation will continue to be an overhang, or "x factor," on the stock until clarity is achieved, but he is "directionally more bullish on a favorable ruling," said Hsieh, whose base-case assumption continues to project a loss of U.S. market exclusivity for cabozantinib around 2030. He maintains an Outperform rating on Exelixis shares.