It has been about a month since the last earnings report for Clovis Oncology, Inc. . Shares have added about 18.8% in that time frame, outperforming te market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Clovis Posts Wider-than-Expected Loss in Fourth Quarter
Clovis reported fourth-quarter 2016 loss of $1.83 per share, wider than the Zacks Consensus Estimate of a loss of $1.65. However, the loss was much narrower than the year-ago loss of $2.23 per share.
Net product revenue was approximately $0.1 million in the quarter. In the year-ago quarter, Clovis did not generate any revenues.
Quarter in Detail
During the reported quarter, research & development expenses decreased 28.3% year over year to $54.5 million, primarily due to decreased development activities related to rociletinib program. General and administrative (G&A) expenses increased 48.8% year over year to $12.2 million, reflecting commercialization costs for Rubraca launch, higher legal expense and personnel costs.
Cash used in operating activities for 2016 was $266.7 million, less than the guidance of approximately $276–$286 million.
The company ended 2016 with $266.2 million of cash equivalents and available-for-sale securities, exceeding the company’s guidance range of $245–$255 million. Thereafter, in January, Clovis raised net proceeds of $221.2 million through an offering of 5.75 million shares of common stock, bringing the total cash equivalents and available-for-sale securities to $487.4 million.
Update on Rubraca
At the conference call, the company said that over 150 different healthcare practitioners had prescribed Rubraca till that date. Meanwhile, the company said the drug has not been facing any reimbursement issues.
Rubraca is not only the first approved product in Clovis’ portfolio, but also has bright prospects given the immense commercial potential in the target market and tremendous demand for PARP inhibitors. Successful commercialization will significantly boost Clovis’ top line, going forward. Rubraca is also under review in the EU for a comparable ovarian cancer indication. Clovis expects an approval in EU in late 2017 or early 2018 and is establishing the commercial infrastructure for the same.
Several studies on Rubraca, targeting different types of ovarian cancer patients, are currently underway. Clovis has completed enrollment in a pivotal maintenance confirmatory study - ARIEL3 - on Rubraca. Data is expected to be available in mid 2017. The ARIEL4 phase III treatment confirmatory study is open for enrolment.
Meanwhile, Clovis is looking to expand Rubraca’s label into additional indications like prostrate, breast and pancreatic cancers, among others. Several clinical studies in ovarian, prostate, breast and gastroesophageal cancers are either open for enrollment or expected to be open for enrollment this quarter.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been two downward revisions for the current quarter.
VGM Scores
At this time, Clovis' stock has a subpar Growth Score of 'D', and is also lagging a lot on the momentum front with an 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Clovis (CLVS) Up 18.8% Since the Last Earnings Report?
It has been about a month since the last earnings report for Clovis Oncology, Inc. . Shares have added about 18.8% in that time frame, outperforming te market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Clovis Posts Wider-than-Expected Loss in Fourth Quarter
Clovis reported fourth-quarter 2016 loss of $1.83 per share, wider than the Zacks Consensus Estimate of a loss of $1.65. However, the loss was much narrower than the year-ago loss of $2.23 per share.
Net product revenue was approximately $0.1 million in the quarter. In the year-ago quarter, Clovis did not generate any revenues.
Quarter in Detail
During the reported quarter, research & development expenses decreased 28.3% year over year to $54.5 million, primarily due to decreased development activities related to rociletinib program. General and administrative (G&A) expenses increased 48.8% year over year to $12.2 million, reflecting commercialization costs for Rubraca launch, higher legal expense and personnel costs.
Cash used in operating activities for 2016 was $266.7 million, less than the guidance of approximately $276–$286 million.
The company ended 2016 with $266.2 million of cash equivalents and available-for-sale securities, exceeding the company’s guidance range of $245–$255 million. Thereafter, in January, Clovis raised net proceeds of $221.2 million through an offering of 5.75 million shares of common stock, bringing the total cash equivalents and available-for-sale securities to $487.4 million.
Update on Rubraca
At the conference call, the company said that over 150 different healthcare practitioners had prescribed Rubraca till that date. Meanwhile, the company said the drug has not been facing any reimbursement issues.
Rubraca is not only the first approved product in Clovis’ portfolio, but also has bright prospects given the immense commercial potential in the target market and tremendous demand for PARP inhibitors. Successful commercialization will significantly boost Clovis’ top line, going forward. Rubraca is also under review in the EU for a comparable ovarian cancer indication. Clovis expects an approval in EU in late 2017 or early 2018 and is establishing the commercial infrastructure for the same.
Several studies on Rubraca, targeting different types of ovarian cancer patients, are currently underway. Clovis has completed enrollment in a pivotal maintenance confirmatory study - ARIEL3 - on Rubraca. Data is expected to be available in mid 2017. The ARIEL4 phase III treatment confirmatory study is open for enrolment.
Meanwhile, Clovis is looking to expand Rubraca’s label into additional indications like prostrate, breast and pancreatic cancers, among others. Several clinical studies in ovarian, prostate, breast and gastroesophageal cancers are either open for enrollment or expected to be open for enrollment this quarter.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been two downward revisions for the current quarter.
Clovis Oncology, Inc. Price and Consensus
Clovis Oncology, Inc. Price and Consensus | Clovis Oncology, Inc. Quote
VGM Scores
At this time, Clovis' stock has a subpar Growth Score of 'D', and is also lagging a lot on the momentum front with an 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.