Market is Stupid Don’t be surprised
As of today,
Exel is down 20% from the day its drug cabozantinib got approved by FDA. Its a drug with real potential, and it does not seem to have got the approval of the market. What do they like? VVUS.
Something they think can make them money fast.
But, does FDA approval on an “appetite suppression” drug mean anything at all? For god’s sakes, its an appetite suppression drug, it is not going to make much money if you can completely prove that it is complete safe. European union has denied this drug. So FDA approval means that it will at most be a last resort drug, for the people who actually need treatments.
Exel on the contrary, is a really good drug with really good positive effects on cancer. People think it is not going to make them money but I think there is more value in Exel than the market evaluates it, I still believe it belongs to a much better price.