Exelixis (NASDAQ:EXEL) Zeroing in on XL184

Exelixis (NASDAQ:EXEL) has decided to pretty much drop everything else and focus solely on prostrate cancer drug XL184. All company cash will be devoted to the drug going forward.

Canaccord said, "Although HOLD rated, we view EXEL stock more positively following deep key-opinion-leader perspective on XL184 clinical activity and aggressive restructuring plans towards product focus...The decision to postpone a registration trial for XL184 in glioblastoma is the right one, in our view, along with suspension of all other drug development activity not supported by external funding. Going forward, all company cash will be devoted to XL184. Following a 40% workforce reduction before YE2010, management estimates 25% more will be shed by YE2012. We estimate existing cash good into 2012."

Exelixis closed Friday at $5.90, down slightly by $0.01, or 0.17 percent. Canaccord has a price target of $6 on the company.