Biotech Values

[vinmantoo]

I agree that EXEL seems quite undervalued but as a longtime holder, i find the buyback announcement rather disappointing. Shouldn't a biotech R and D company have some better way to invest their cash?

Well, EXEL has been making deals in the past year of so, but you have to find deals worth making rather than deals just to make deals. They are also spending a lot of money on trials to expand CABO sales, although the last few combination trials didn't pan out. Still, CABO sales are continuing to grow so they aren't in danger of needing to raise cash in the foreseeable future. The the stock price has dropped over the past few years so and they have a lot of cash, and that combination often leads to buybacks. If not a stock buyback then a dividend to reward investors. Which would you prefer?