Leerink cuts Clovis Oncology PT to $22 from $30

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Leerink lowered its price target for Clovis Oncology (NASDAQ:CLVS) to $22 from $30 but maintained its “market perform” rating after the company reported third quarter results. The stock closed at $16.61 on Oct. 30.

Analyst Dr. Andrew Berens said Clovis reported disappointing Rubraca revenues of $22.8-million in the third quarter, missing consensus and his estimate by about 25%, and guiding to minimal growth in the fourth quarter.

“We expect pressure on Clovis shares will continue, as concerns about the market dynamics for the PARP inhibitor class in ovarian cancer persist, both in terms of market uptake as well as the competitive dynamics. Based on these challenges, we have lowered our Rubraca sales estimates,” he added.

“While we believe some investors may find the valuation compelling at these levels, we remain on the sidelines, given the persistent PARP inhibitor commercial challenges, lack of near-term transformative catalysts, and diminished prospects for strategic optionality,” Dr. Berens said.

Melane LaBelle Sampson