Piper Jaffray Downgrades Clovis Oncology, Asks: 'Point Of Maximal Optimism?'

In a report published Friday, Piper Jaffray analysts downgraded the rating on

from Overweight to Neutral, while maintaining the price target at $100. According to the analysts, "[W]e think the point of maximal optimism may have been reached for the clinical data and we await in-market experience to better inform our outlook." The stock has performed well in the weeks leading up to Clovis' NDA filing and potential approval. The company's new drug, rociletinib, is expected to be able to capture meaningful market share in the US, EU and Asia, especially for T790M-negative and/or first line treatment. However, for the present, the analysts prefer a more conservative stance till there is more visibility into the competitive landscape and the commercial positioning of the drug. "We hear many investors mention CLVS as a likely acquisition target, and this would make sense to us. Additionally, strong PFS data at ASCO could meaningfully drive shares higher, in our view," the Piper Jaffray report said.