Our view: Chris Senner, Executive Vice President & Chief Financial Officer and Andrew Peters, Senior Vice President, Strategy joined us for a fireside chat at the RBC Global Healthcare Conference. Key takeaways from the chat were 1) timing on resolution for the now ongoing ANDA litigation proceedings and 2) implications of COSMIC-313 July 2022 top-line data readout for 1L RCC. We maintain our Outperform rating and $31 PT.
Start of ANDA litigation and upcoming COSMIC-313 top-line readout has Cabometyx in the near-term spotlight for future growth prospects. In our fireside chat, Chris Senner, Chief Financial Officer and Andrew Peters, Senior Vice President, Strategy touched on the recently commenced ANDA litigation and future growth prospects of the Cabometyx franchise. The ANDA litigation, which kicked off yesterday (Monday, May 16), is a judge bench trial involving MSN Pharmaceuticals with a potential decision by year-end 2022, but also, as the team notes, such proceedings come with a fair degree of the unpredictability. Additionally, litigation with Teva related to 3 patents is expected to have a hearing in May 2023. On the Cabometyx franchise, the upcoming July 2022 top-line data release for COSMIC-313 triplet regimen is tracking to be the near- term growth driver for the franchise. It was noted by the speakers that the safety and tolerability profile will be in high focus, as these characteristics will be drivers for including Cabometyx with the already approved doublet regimen of Opdivo+Yervoy for another subset of 1L RCC patients. We are anticipating the approval based on COSMIC-313 to be the primary driver of revenue growth to achieve $1.5B run-rate and provide the best opportunity to exceed this in 2023+. We also look to pipeline advancements with XL092, XB114 and XB002 to be future growth drivers for EXEL.