Clovis Looks to Cash in on Secondary Offering
Clovis Oncology saw its shares make a handy gain in Wednesday’s session after the company priced its secondary offering.
Shares of Clovis Oncology Inc. (NASDAQ: CLVS) saw a handy gain in Wednesday’s session after the company priced its secondary offering. This offering comes on the heels of a massive gain that the stock made at the beginning of the week. It’s no doubt that the firm is looking to cash in on this incredible rise and make a few extra bucks.
The stock closed last week at roughly $60 per share, and since then it has climbed over 55% to the current price level above $90.
Clovis is offering roughly 3.41 million shares for $88 per share, with an overallotment option for an additional 511,363 shares. The size of the offering was upsized to $300 million from $250 million.
The underwriters for the offering are JPMorgan, Merrill Lynch, Stifel and SunTrust Robinson Humphrey.
The company intends to use the net proceeds of the offering for general corporate purposes, including sales and marketing expenses associated with Rubraca (rucaparib) in the United States and, if approved by the European Medicines Agency (EMA), in Europe; funding of its development programs; general and administrative expenses; acquisition or licensing of additional product candidates or businesses; and working capital.
Since the stock jumped, a few analysts have weighed in on Clovis:
- JPMorgan reiterated an Overweight rating and raised its price target to $111 from $72.
- Goldman Sachs reiterated a Neutral rating and raised its price target to $90 from $67.
- Janney Montgomery Scott upgraded it to Buy from Neutral.
- Morgan Stanley has an Overweight rating.
- Leerink Swann has an Outperform rating and raised its price target to $114 from $85.
- Stifel has a Buy rating and raised its price target to $125 from $86.
Shares of Clovis were last seen up nearly 6% at $93.80 on Wednesday, with a consensus analyst price target of $90.91 and a 52-week range of $11.57 to $93.97.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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