Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Exelixis Continues On

By Brian Orelli, PhD - Mar 31, 2014 at 7:42PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Exelixis' shares got hammered after announing that it was continuing a clinical trial testing Cometriq in prostate cancer. Investors seem to be worried about how well Cometriq might compete with drugs from Johnson & Johnson and Medivation, assuming it's successful when final data is revealed.

Shares of Exelixis ( EXEL -0.71% ) got hit hard last week after the company said its clinical trial testing Cometriq in prostate cancer would continue. While the continuation of a trial would normally be a non-event -- we'll get the final data before the end of the year -- investors were clearly hoping that the drug would work so well that the trial would be stopped early.

While the trial could still prove successful on the final look at the data, some of the stock price decline is warranted because how well Cometriq works will ultimately determine how well the drug competes against Johnson & Johnson's ( JNJ -2.39% ) Zytiga and Medivation ( MDVN ) and Astellas' Xtandi.

In the following video, Fool contributor Brian Orelli and health-care bureau chief Max Macaluso discuss what the news means for Exelixis, Johnson & Johnson, Medivation, and Astellas.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Exelixis, Inc. Stock Quote
Exelixis, Inc.
EXEL
$16.79 (-0.71%) $0.12
Medivation, Inc. Stock Quote
Medivation, Inc.
MDVN
Johnson & Johnson Stock Quote
Johnson & Johnson
JNJ
$155.93 (-2.39%) $-3.82

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
673%
 
S&P 500 Returns
142%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.