Exelixis (EXEL) is taking a page out of Incyte's (INCY) playbook, teaming up with Bristol-Myers Squibb (BMY) and Roche (RHHBY) to test its Cabometyx and their immuno-oncology (I-O) drugs in liver and bladder cancer.
In the stock market today, Exelixis stock flirted with a 16-year-plus high it touched on Tuesday, as the company announced its collaborations with Bristol-Myers and Roche. Shares came within 10 cents of eclipsing that Tuesday high of 23.49, rising 6.5% to 23.09. It helped lift IBD's 423-company Biomed/Biotech industry group 4.2%, as did 7%-plus gains by Bluebird Bio (BLUE) and Cara Therapeutics (CARA).
"Planned phase 3 trials, if successful, could support potential label expansion for Cabometyx in several additional indications, including first-line kidney cancer, bladder cancer, hepatocellular carcinoma and potentially other tumor types," Leerink analyst Michael Schmidt said in a research note.
Cabometyx inhibits tyrosine kinases and VEGFR2 receptors to slow tumor growth, metastasis and angiogenesis. It is approved as a monotherapy for second-line advanced renal cell carcinoma.
I-O partnerships are nothing new. Merck (MRK) is testing out its PD-1 inhibitor Keytruda in conjunction with Incyte's IDO inhibitor epacadostat (not yet approved) in five tumor types. Bristol-Myers also has teamed up with Horizon Pharma (HZNP) in advanced solid tumors.
IBD'S TAKE: There are more than 1,000 I-O trials underway right now, analysts estimate. But only a small handful of I-O drugs have actually been approved. Who's leading the sector in terms of approvals? Head to IBD's Technology page for the best opportunities in I-O.
Exelixis and Bristol will focus on first-line RCC and have trials planned in HCC and bladder cancer, the companies said Monday. Exelixis' outside-U.S./Japan partner Ipsen will participate in the RCC trial. Exelixis' Japan partner Takeda Pharmaceuticals has the opportunity to do so.
Partnering in the phase 3 trial will help Exelixis shave off some costs, Schmidt wrote. Exelixis' Cabometyx will be combined with Bristol's Opdivo and Yervoy — respectively, PD-1 and CTLA-4 inhibitors.
"While detailed economics with Bristol-Myers were not disclosed in the press release, Exelixis may potentially end up paying as little as 20%-25% of these trial costs given the 50-50 cost split with Bristol-Myers," he wrote.
Exelixis and Roche will combine Cabometyx and Tecentriq, a PD-L1 inhibitor, in a phase 1b escalation study in patients with locally advanced or metastatic solid tumors, they said. The trials will begin enrolling in mid-2017.
The trial will look at first-line advanced clear cell RCC and three cohorts of urothelial carcinoma. Exelixis will sponsor the study with Roche contributing Tecentriq. Ipsen will participate and contribute 35% of the costs. Takeda could still opt in.
Schmidt kept his outperform rating on Exelixis stock.
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