Goldman Sachs Initiates Coverage On Exelixis (EXEL)

Goldman Sachs is initiating coverage on shares of Exelixis EXEL with a Neutral rating and a $13 price target on shares. In a note to investors, Goldman writes, "We are initiating coverage on Exelixis (EXEL) with a Neutral rating and a 12-month price target of $13. 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." Shares of EXEL closed at $12.26 on Friday.