The shares of Exelixis, Inc. (NASDAQ:EXEL) have jumped by 3.01% in today’s trading session, as the company announced the first regulatory approval for Cobimetinib. Swissmedic, the Swiss licensing and supervisory authority of Switzerland, has approved the use of cobimetinib in combination with vemurafenib for the treatment of advanced Melanoma. The prescription drug is available in Switzerland under the trade name of Cotellic. Exelixis, Inc. (NASDAQ:EXEL) is working with Genentech, a subsidiary of Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY), for the development and distribution of cobimetinib. Both companies have applied for regulatory approvals in different territories, including Genentech’s New Drug Application (NDA) with the FDA in the U.S. in December 2014 and Roche’s Marketing Authorization Application with the European Medicine Agencies in late 2014.
Michael M. Morrissey, CEO of Exelixis, Inc. (NASDAQ:EXEL), said, “The Swiss regulatory approval of cobimetinib is an important advance for melanoma patients, physicians, and caregivers.” This is the second positive announcement from the biopharmaceutical company in as many months. It announced successful trial data for its cancer drug, cabozantinib, in July 2015, offering positive response from the patients receiving treatment.
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The shares of Exelixis, Inc. (NASDAQ:EXEL) have grown by 336% year-to-date and are trading at $5.81 as of the reporting period. The smart money was slightly bearish on Exelixis, Inc. during the second quarter however, with 30 hedge funds holding ownership positions in the company worth $1.07 billion. The aggregate equity positions from hedge funds were up by just 3% during the quarter, despite a 46% growth in its share price during that time, as many top investors decided to cash out on their holdings. The overall hedge fund ownership also declined by one during the quarter.
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While we also track insider activity, the insiders of Exelixis, Inc. (NASDAQ:EXEL) have remained inactive in 2015, with no sales or purchases reported so far this year.
What does the smart money think about Exelixis, Inc. (NASDAQ:EXEL)?
Mark Lampert’s Biotechnology Value Fund came out as the top stockholder of the company, having 2.77 million shares valued at $10.41 million. However, the investment fund reduced its stake in the company by 45% against the previous quarter. Citadel Investment Group, led by Ken Griffin, was another major shareholder of the company, improving its stake by 870% to 2.45 million shares at the end of the second quarter.
Springbok Capital, led by Gavin Saitowitz and Cisco J. Del Valle, initiated a new position in Exelixis, Inc. (NASDAQ:EXEL) worth $38,000 from 10,057 shares. Among the hedge funds cutting their stakes in the biopharmaceutical by huge amounts was Israel Englander’s Millennium Management, which trimmed its stake by 90% to 110,492 shares at the end of the second quarter. D E Shaw was another investment firm to reduce its stake, by 50% to 54,988 shares.
Regulatory approvals and successful test results are great catalysts for any biopharmaceutical company, as witnessed by the Exelixis’ robust growth this year. Considering the positive test results in July and the obtained regulatory approval, we recommend investors initiate new positions in Exelixis, Inc. (NASDAQ:EXEL) before it appreciates too much.
Disclosure: None
