Exelixis' cancer drug gets FDA approval but analysts say its priced in; shares down

Shares of cancer drugmaker Exelixis EXEL.O fall 2.3% to $36.83

US FDA approved EXEL's cancer drug, Cabometyx, for treating adult and pediatric patients with previously treated advanced neuroendocrine tumors (NET)

Citizens Bank analyst Silvan Tuerkcan notes EXEL's shares declined as investors had already factored the approval into the stock price

Tuerkcan says investor focus will now be on the launch of the drug for patients with NET, and size of the opportunity, which is expected to drive "a significant portion" of the company's sales growth in the near term

Leerink Partners analyst Andrew Berens estimates Cabometyx to bring in $75 million for NET in 2025, with peak sales reaching $750 million before losing exclusivity impact starting in 2030

Stock gained ~59% in the last 12 months