UPDATE: Piper Jaffray Initiates Coverage on Clovis Oncology with Neutral Rating, $20 PT on Strong Valuation

In a report published Wednesday, Piper Jaffray initiated coverage on Clovis Oncology

with a Neutral rating and $20.00 price target. Piper Jaffray noted, “We are initiating coverage on Clovis with a Neutral rating and $20 price target. Clovis combines a rare track record in oncology development with insightful focus on companion diagnostics that may yield, eventually, uncommon clinical value from its drug candidates. That said, we believe the current valuation reflects no small amount of pipeline optimism despite limited clinical data. Lead candidate CO-1686 may define standard-of-care for drug-resistance mutant EGFR-T790M in non-small cell lung cancer (NSCLC), with additional potential in 1st-line EGFR-mutant NSCLC. Data at ASCO (5/31-6/4) or later in 2013 should provide greater clarity, potentially increasing this candidate's contribution to our valuation. PARP-inhibitor rucaparib appears promising in ovarian and breast cancers but, here too, largely on preclinical evidence. That said, in our view, early clinical data from either program may have predictive value for development success, and we expect data flow to begin in late-2Q/early-3Q13.” Clovis Oncology closed on Tuesday at $24.67.