Goldman Sachs Initiates Coverage On EXEL

Goldman Sachs has initiated coverage on Elexixis Inc. EXEL with a Neutral rating and a price target of $13. Says Goldman Sachs, in its report, “The key driver for shares is Cabo, an oral drug in development for a variety of cancers. We view the prostate cancer opportunity as most compelling (we project probability-adjusted peak sales of $1.6 bn) and expect Phase 3 to start in 2H11. We believe positive Phase 2 Cabo data is priced in after the recent appreciation of EXEL shares and we are on the sidelines pending incremental data on durability of response and tolerability.” EXEL closed Friday at $12.26.