Exelixis stock jumped 10% after court ruling

Shares of Exelixis, Inc. (NASDAQ:EXEL) jumped during the 2nd hour of market time and reached a 10% increase. The company secured a significant victory in a patent infringement case against MSN Laboratories Private Limited.

About Exelixis, Inc

Exelixis, Inc. is a biotechnology company focused on the development, and commercialization of new medicines for difficult-to-treat cancers. The company's lead product, Cabometyx, is used to treat advanced renal cell carcinoma and other forms of cancer. Exelixis is also advancing its pipeline with promising candidates like zanzalintinib, which is being evaluated in combination with other therapies for various cancers. The company is also evaluating the use of Cabometyx in combination with the drug atezolizumab for treating prostate cancer.

Why the Stock is Up

The stock's rise can be attributed to the recent court decision as it has ruled that MSN's proposed generic version of Cabometyx infringed on Exelixis' cabozantinib compound patent (U.S. Patent No. 7,579,473), but did not infringe on the N-2 polymorph patent (U.S. Patent No. 8,877,776). The rise could also be attributed to yesterday's announcement by Exelixis that it has signed a deal with Merck (NYESE:MRK) to enter a clinical development collaboration to evaluate the combination of zanzalintinib with Merck’s pembrolizumab in a Phase 3 pivotal trial for the treatment of patients with head and neck cancer, along with other trials for the treatment of renal cell carcinoma, which is the most common type of kidney cancer.