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Clovis Oncology Shares Nose-Dive As Potential Bankruptcy Filing Looms

Published 09/11/2022, 16:11
Updated 09/11/2022, 17:40
© Reuters. Clovis Oncology Shares Nose-Dive As Potential Bankruptcy Filing Looms

  • Clovis Oncology Inc (NASDAQ: CLVS) posted a Q3 EPS loss of $(0.39), up from $(0.56) a year ago, on sales of $30.66 million, down from $37.92 million.
  • The shares tanked after the company noted bankruptcy concerns in its Q3 SEC filing.
  • Based on current cash and cash equivalents of $58.30 million and estimates for Rubraca revenues, the company will not have sufficient liquidity to maintain operations beyond January 2023.
  • Last quarter, Clovis raised the need for additional capital to continue beyond February 2023.
  • Related: Clovis Oncology's Rubraca Hits Primary Goal In Prostate Cancer Settings.
  • Operating losses and negative cash flows are expected to continue for the foreseeable future, even with Rubraca generating revenues.
  • Rubraca revenues have not been consistent in prior quarters and have been trending downward during the past two years, initially due to the COVID-19 pandemic on patient visits and diagnoses, but more recently due to competition from other products on the market.
  • The company is in active discussions on a potential sub-licensing arrangement for Rubraca outside the U.S., but the regulatory uncertainty has made it more difficult to reach an agreement on financial terms.
  • Clovis is also in active discussions to sell license rights to FAP-2286.
  • Price Action: CLVS shares are down 75.60% at $0.24 on the last check Wednesday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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