UPDATE: Piper Jaffray Upgrades Clovis Oncology to Overweight Following CO-1686 Data Presentation

In a report published Thursday, Piper Jaffray analyst Charles C. Duncan upgraded the rating on Clovis Oncology CLVS from Neutral to Overweight, and raised the price target from $36.00 to $100.00. In the report, Piper Jaffray noted, “Clovis presented Phase I data for CO-1686 in 2nd-line non-small cell lung cancer (NSCLC) this week at ASCO. We believe investor focus is increasingly being driven by CO-1686 as it solidifies its potential as the sole available candidate for T790M EGFR mutants, a significant lung cancer population. The data and our diligence have reduced our perception of clinical and commercial risk for '1686, pointing to a possible fast-to-to market strategy, greater commercial potential (both pricing and penetration), and highlighting '1686's scarcity value. In our view, institutional investor interest is such that any near-term equity financing may have limited negative impact and we anticipate recent momentum for CLVS shares to continue, especially given possible upside regulatory newsflow (breakthrough therapy designation) and potential partnering over the next 12 months. Based on our model adjustments, we are increasing our price target to $100 and raising our rating to Overweight.” Clovis Oncology closed on Wednesday at $69.90.