Exelixis ($EXEL) announced this morning it won European Commission approval for it's lead compound, Cometriq, in MTC (rare version of thyroid cancer). This was widely expected after the CHMP issued a positive opinion in December though it has lifted the stock a few percent while the broader Nasdaq Biotech Index is down.
The real news that will move the stock should come out within the next few months which is Cometriq's results in it's phase 3 trial in prostate cancer. If successful analysts expect Cometriq sales could top $1.7 billion by 2020. The company also has three additional active phase 4 trials for Cometriq in prostate (pain reduction), MTC (overall survival), HCC, and RCC not to mention a countless number of phase 2 trials for the compound.
They also have a number of impressive partnerships including Genetech which expects to announce phase 3 results of a partnered compound, XL518, in Melanoma later this year.
The company has a market cap of $1.26 billion which seems like great value based on the above near term catalysts and opportunities. I own 13,000 shares of Exelixis so I have a great deal of confidence in the upside of this biotech.
Disclosure: I am long EXEL.