+ 4.25
+ 1.17%
+ 2.33
+ 0.67%
+ 4.31
+ 0.99%

Clovis Oncology Analyst Turns Bearish Ahead Of PDUFA Date For Rubraca

April 9, 2020 10:04 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Clovis Oncology Analyst Turns Bearish Ahead Of PDUFA Date For Rubraca

Despite optimistic expectations concerning label expansion for Clovis Oncology Inc's (NASDAQ:CLVS) Rubraca to include prostate cancer, an analyst at BofA Securities is turning bearish on the stock. 

The Clovis Analyst

Tazeen Ahmad downgraded Clovis shares from Neutral to Underperform but maintained a $6 price target. 

The Clovis Thesis

The recent run in Clovis shares indicates a high likelihood of the FDA approving Rubraca in second line BRCA+ metastatic castration-resistance prostate cancer, or mCRPC, by the May 15 PDUFA date, Ahmad said in a Thursday note. (See the analyst's track record here.)

AstraZeneca plc's (NYSE:AZN) competing PARP inhibitor — Lynparza — is also being reviewed for a potentially broader HRR+ label in second-line mCRPC, the analyst said. 

Assuming a 15% peak penetration in the U.S. BRCA+ market, BofA estimates peak non-risk-adjusted worldwide sales of $150 million for Rubraca in mCRPC.

Ahmad said he would also wait and see whether the COVID-19 pandemic will impact Clovis' early launch trajectory.

Once on therapy, Rubraca's oral dosing could prove helpful, the analyst said. 

A broader label for AstraZeneca to include ATM mutations could be perceived as favorable, especially among community-based doctors at the onset, he said. 

BofA models risk-adjusted peak sales of $579 million for Rubraca in 2028 across all indications.

"Upside risks are a faster-than-expected ramp from prostate indication on top of its ongoing ovarian launch as well as value from CLVS' pipeline."

CLVS Price Action

Clovis shares were trading 0.68% higher at $6.98 at the time of publication Thursday.

Related Links:

The Daily Biotech Pulse: FDA Nod For Pfizer, Vanda Forges Partnership For COVID-19 Drug Research, Neuronetics Pre-Announces Revenue Shortfall

Novavax Identifies COVID-19 Vaccine Candidate, Human Testing To Begin In Mid-May

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.

Related Articles

Moderna Analyst: Unrealistic COVID-19 Vaccine Expectations Create Unfavorable Setup

Coronavirus vaccine developer Moderna Inc's (NASDAQ: MRNA) stock was moving lower Monday after a downgrade from BofA Securities.  The Moderna Analyst: Geoff Meacham downgraded Moderna shares from Neutral to Underperform and maintained a $150 price target. read more

AstraZeneca Analyst Flags Lack Of Details In Interim COVID-19 Vaccine Data

AstraZeneca plc (NASDAQ: AZN) announced Monday interim Phase 3 data for its coronavirus vaccine candidate AZD1222 from studies conducted in the U.K. read more

AstraZeneca Success On Prostate Cancer Drug Lowers Enthusiasm For Clovis

What 3 FibroGen Analysts Are Expecting From Thursday's Roxadustat Adcom Verdict

FibroGen, Inc. (NASDAQ: FGEN) has a key catalyst Thursday when FDA's Cardiovascular and Renal Drugs Advisory Committee will issue its recommendation on the company's new drug application for roxadustat. The committee is scheduled to meet between 9:30 a.m. and 5:30 p.m. read more