UPDATE: JP Morgan Initiates Clovis Oncology at Overweight

JP Morgan has published a research report on Clovis Oncology CLVS after initiated coverage on the company with an Overweight rating and $20 price target. In the report, JP Morgan writes, "We are initiating coverage of CLVS with an OW rating primarily based on the potential of CO-101, the company's lead asset for pancreatic cancer. Underpinning CO-101 and the rest of Clovis' early but interesting pipeline is a strong management team with an excellent track record of success. Additionally, a unique feature of all of the company's candidates is the development of companion diagnostics for patient selection, which could provide a regulatory and commercial benefit. The key event for 2012 is top-line results from the pivotal LEAP study in 4Qe, and we suspect shares could rise in anticipation of data. Our Dec 12 price target of $20 reflects a 55% probability of approval and market assumptions that leave several major potential upside levers." Clovis Oncology is currently trading up $0.33 today from its $14.09 closing price.