While Exelixis (EXEL) has struggled over the past few years, it finally seems like the stock is starting to keep long term price gains going. While the upward momentum started in December of 2014, the stock has grown at an astonishing rate throughout the past month. So, today we’ll talk about what’s causing the movement in Exelixis (EXEL) and whether or not the company will be able to keep the momentum going.
What’s Caused Exelixis (EXEL) To Start In The Positive Direction?
In mid December, Roche and Exelixis (EXEL) announced that they were submitting an application to the FDA for a melanoma therapy that uses a combination of cobimetinib (by Exelixis) and Zelboraf (by Roche). In their application, the biotech companies asked the FDA to fast track the applications; a request that was granted.
Fast forward to January and more good news was on the way. As the momentum was building off of December’s good news, investors started to talk about an Exelixis (EXEL) comeback. In the month of January, the company announced an important contract restructuring. The announcement stated that the Swedish Orphan Biovitrum AB (also known as Sobi) agreement was being changed to support the commercialization and distribution of COMETRIQ for progressive treatment of thyroid cancer in the European Union, Norway, Russia, Turkey, and Switzerland.
In February, growth in the Exelixis (EXEL) stock price wasn’t just noticed, it was touted. The company’s recovery in the stock market was finally in full swing and the big timers were talking about it. The fact that the company was doing so well had investors excited already, but more good news was on its way. The FDA would announce that it accepted the fast tracked new drug application. Following the news, the stock continued to soar in the upward direction. Today, the stock price has reached $3.07 per share; an incredible climb from the $1.29 per share price we saw in late December.
Will Exelixis (EXEL) Be Able To Keep The Momentum Flowing?
I think so. The reality is that Exelixis (EXEL) is an incredibly strong company; and with recent events, they’ve proven that they have the ability to innovate. As Exelixis (EXEL) continues to prove that its still capable of advancements in the medical arena the stock price has nowhere to go, but up.
What Are Your Thoughts?
Do you think Exelixis (EXEL) will continue to rise in value? Why or why not? Let us know in the comments below!