Market Overview

AstraZeneca Success On Prostate Cancer Drug Lowers Enthusiasm For Clovis

AstraZeneca Success On Prostate Cancer Drug Lowers Enthusiasm For Clovis

Positive top-line results from a competitor’s prostate cancer drug trial led Bank of America to downgrade Clovis Oncology Inc (NASDAQ: CLVS).

The Analyst

Bank of America's Tazeen Ahmad downgraded Clovis Oncology from Buy to Neutral while lowering the price target from $13 to $7.

The Thesis

Last week, AstraZeneca plc (NYSE: AZN) reported positive results for its prostrate cancer treatment Lynparza for patients with certain genetic profiles. Ahmad wrote in a note on Tuesday that AstraZeneca’s incremental success changes the game for Clovis.

Ahmad said the competitive scene would be important to its view of Clovis, and the news makes it more likely that AstraZeneca will be on the market soon. Bank of America now sees it as “prudent to assume a two-player prostate cancer market from day one,” Ahmad wrote.

Clovis has slowly gained share in ovarian cancer treatment with its Rubraca drug, and Bank of America sees the company as better positioned in prostrate cancer treatments, Ahmad said.

But Ahmad views a strong launch of the prostrate cancer drug as critical, given a slower-than-expected ovarian cancer drug launch and the prostate cancer drug has been the biggest driver of Bank of America's model on Clovis.

Clovis’ prostrate drugs could, at least initially, also have a narrower use label relative to AstraZeneca’s drug, and more “visibility is needed into its continued uptake against competitors … and ability to pay down current debt,” Ahmad said of the prospects for the stock.

Price Action

Clovis stock was down more than 1.5% Tuesday at $5.58 per share.

Related Links:

Vascepa Delay Sends Amarin Reeling, Eidos Jumps On Buyout Offer, Nektar's Bitter Q2

FDA Approves Karyopharm's Blood Cancer Treatment, Grifols' Immunodeficiency Drug

Latest Ratings for CLVS

Oct 2019MaintainsSell
Sep 2019DowngradesOutperformMarket Perform
Aug 2019DowngradesBuyNeutral

View More Analyst Ratings for CLVS
View the Latest Analyst Ratings

Posted-In: Bank of America pharmaceuticalsAnalyst Color Biotech Downgrades Price Target Analyst Ratings General Best of Benzinga


Related Articles (AZN + CLVS)

View Comments and Join the Discussion!

Latest Ratings

SONORBC CapitalInitiates Coverage On18.0
GIIIBank of AmericaUpgrades
JNPRRBC CapitalAssumes27.0
AAPLRBC CapitalInitiates Coverage On295.0
KRDeutsche BankUpgrades27.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Regeneron's Eylea Prefilled Syringe Clears FDA Hurdle

RBC's Mahaney On Roku Downgrade: We Were Wrong