Are Analysts Realistic on Clovis Oncology Now?
Shares of Clovis Oncology dropped after the FDA Oncologic Drugs Advisory Committee voted against its lung cancer drug.
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Clovis Oncology Inc. (NASDAQ: CLVS) was down about 5% Tuesday and was down even more Wednesday after the Oncologic Drugs Advisory Committee voted against its lung cancer drug. The committee recommended that the FDA wait to see results from TIGER-3, Clovis’s ongoing Phase 3 trial, before making a decision on approval of the treatment. As a result analysts piled into the stock, and 24/7 Wall St. has put together a few different views surrounding this FDA decision.
Looking ahead, the FDA set a target action date of June 28, 2016 under the Prescription Drug User Fee Act (PDUFA). The TIGER-3 trial, Clovis’ confirmatory randomized, controlled Phase 3 study for rociletinib is ongoing, with patient enrollment expected to complete in late 2018.
Janney commented on the decision:
Today’s Advisory Committee was more focused than we anticipated on the shortcomings in Clovis’s data set. The panel vote recommended 12-to-1 to wait for TIGER-3 data (expected YE18 at the earliest), we expect to result in a CRL and thus we are pushing roci’ out to a 2020 launch. The panel members were uncomfortable with determining if the agent’s toxicities and dose-dependence were adequately demonstrated by the data at hand. Our fair value is reduced to $24 (from $50) and we remain Buy rated ahead of an expected rucaparib NDA filing this quarter in ovarian cancer.
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A few other analysts weighed in after the:
- Mizuho was at Neutral but lowered its price target from $21 to $15.
- JPMorgan downgraded Clovis from Overweight to Neutral and the target was cut to $15 from $42.
- Credit Suisse downgraded it to Neutral from Outperform with a target cut to $154 from $32.
- Stifel reiterated a Buy rating with a $30 price target.
- Piper Jaffray reiterated a Neutral rating with an $18 price target.
Shares of Clovis closed trading at $13.84 on Friday. The stock has a consensus analyst price target of $20.50 and a 52-week trading range of $12.25 to $116.75.
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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.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
