AstraZeneca plc (ADR) (AZN), Johnson & Johnson (JNJ): Will the Exelixis, Inc. (EXEL) Hype Catch Up to Its Valuation?

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How you value that franchise is a big question. Amgen paid 16 times Onyx’s annualized second quarter earnings to acquire it last month. For comparison, Exelixis is trading an eye-popping 62 times annualized second-quarter sales. This suggests that Exelixis is best suited for only the most speculative investor, willing to take a big bet Cometriq will succeed in late stage trials.

The article Will the Exelixis Hype Catch Up to Its Valuation? originally appeared on Fool.com and is written by Todd Campbell.

Todd Campbell has no position in any stocks mentioned. The Motley Fool recommends Exelixis. The Motley Fool owns shares of Exelixis.

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