Published on 10 Nov 2022 on Zacks via Yahoo Finance
Clovis (CLVS) Plummets on News of Possible Bankruptcy Filing
Shares of Clovis Oncology CLVS plunged 71.6% after the company announced that it will not have sufficient liquidity to maintain its operations beyond January 2023, based on current cash and cash equivalents, together with current estimates for revenues to be generated by sales of the cancer drug, Rubraca. This announcement overshadowed the company’s third-quarter results.
Per management, a potential bankruptcy filing in the near term is quite plausible as the recent regulatory developments impacted current revenues and the commercial potential of Rubraca. The company is also facing continuing challenges in raising additional capital as a result of the uncertain market potential of Rubraca.
Rubraca (rucaparib), an oral small molecule inhibitor of poly ADP-ribose polymerase (“PARP”), is marketed in the United States for an indication specific to recurrent epithelial ovarian, fallopian tube or primary peritoneal cancer and also for an indication specific to metastatic castration-resistant prostate cancer (“mCRPC”).