UPDATE: Piper Jaffray Reiterates Overweight Rating, Lowers PT on Clovis Oncology to Reflect Recent Financing

In a report published Tuesday, Piper Jaffray analyst Charles C. Duncan reiterated an Overweight rating on Clovis Oncology CLVS, but lowered the price target from $100.00 to $87.00. In the report, Piper Jaffray noted, “We are adjusting our price target for Clovis Oncology to reflect the company's recent equity financing for approximately 3.8MM shares. The updated, fully diluted share count is ~32.4MM shares, which includes ~2.5MM in options with an average exercise price of $16.89. Based on this dilution of ~13% we are lowering our price target from $100 to $87. We continue to view CO-1686 as likely to prove to be the sole effective agent for T790M mutant EGFR non-small-cell lung cancer (NSCLC) for the foreseeable future. We anticipate this will support an accelerated approval pathway and eventually deep penetration of the market, both in the U.S. and globally. Given this outlook we reiterate our Overweight rating for Clovis.” Clovis Oncology closed on Monday at $68.99.