Exelexis has excellent opportunity

Exelixis shares are still down 42% in the last six months, mainly due to news in March that a clinical trial would continue to final analysis, disappointing the Street.

Shares are on the mend, and have surpassed their 50-day moving average. 

    

Exelixis currently has over a dozen clinical trials ongoing for its flagship product Cometriq, which, if the data are positive, could send shares sharply higher.

      

Revenues from Cometriq are up 65% year-over-year, but competition is fierce and the company has a significant cash burn rate, with financing to last until late 2015.

      

Given the number of catalysts upcoming and the potential market for Cometriq, Exelixis has the potential for massive rewards for the risk-tolerant investor.

      
As a PhD-level epidemiologist and market analyst, there is no sector more interesting to me than biotech. I have opined on several of these names in the past. Those of you who follow my work know that I search for companies that are near-completion of developing new drugs, or have only a few licensed for use. In this article, I would like to discuss a company that currently has revenues, but is conducting numerous trials that have the potential to bring in exponentially higher revenues in the years to come. While there are always risks involved in this sector, my review of the data and the potential for Exelixis (NASDAQ:EXEL) makes me believe that shares have strong potential upside from their current levels, if positive data is reported. The reverse is also true, should the data be poor. But, I think after the sell-off in shares that occurred this spring, Exelixis may be one of the...READ FULL ARTICLE