Clovis Oncology stock is rising off its uptrend channel line as large players volume continues to rise. The uptrend is also supported by the Twiggs Money Flow which is slowly rising. I dipped my toe in the water and purchased a little bit of Clovis Oncology stock today.
Clovis Oncology News
Since the company reported earnings on August 2, 2017, Clovis Oncology shares have lost about -8%. Clovis reported a second-quarter 2017 loss of -$1.29 per share, which was narrower than the year-ago loss of -$2.07 per share. The reported loss was greater than analysts forecast of -$1.27.
Net product revenues, entirely from Rubraca, were approximately $14.6 million in the quarter, up 108.6% sequentially. Revenues beat the consensus estimate of $12.54 million. The company said that 750 new patients were registered in the quarter.
Clovis Oncology’s Rubraca has shown an impressive growth trend in 2017. The drug received accelerated approval in Dec 2016. Rubraca is a PARP inhibitor, which is approved as a monotherapy for the treatment of advanced ovarian cancer in patients who have been treated with two or more chemotherapies. Rubraca has had an almost 100% growth in sales sequentially in the second quarter of 2017. Rubraca sales were $21.7 million in the first half of 2017. The company had 1100 new patients on therapy in the period.
Two confirmatory studies – ARIEL-3 and ARIEL-4 – are being conducted by Clovis for converting the accelerated approval to continued approval of Rubraca. The company’s shares got a boost when it announced positive top-line results from ARIEL 3 in June 2017. Progression-free survival (PFS) and safety results from the ARIEL-3 study demonstrated that Rubraca had a meaningful impact in delaying disease recurrence in advanced ovarian cancer patients. Clovis is planning to file a supplemental new drug application (sNDA) to the FDA by October this year based on ARIEL-3 data to include second-line or later maintenance indication for advanced ovarian cancer on the label of Rubraca. The company expects the label expansion to increase patient population by at least four times.
Rubraca is under review in the EU for a comparable ovarian cancer indication. An approval is expected from the EU in the first quarter of 2018.
I’m hearing rumors circulating that Clovis Oncology could be a takeover candidate by the end of the year because of Rubraca and the fact that Gilead bought KITE at the end of August.
Clovis Oncology Stock Price
Clovis Oncology stock usually swings higher at this time of year according to a seasonality study. Clovis Oncology stock is rising nicely off its uptrend line. The Effective Volume study shows large players volume rising. The Twiggs Money Flow is also rising which supports the thesis that large players are accumulating Clovis Oncology stock. I explain a lot of these chart patterns on the Frequently Asked Questions page here.
CLVS does present a good setup opportunity. Prices have been consolidating lately. There is a support zone below the current price at $72.66, a stop order could be placed below this zone.
Clovis Oncology Review
CLVS's Return On Assets of -43.57% is inline with the rest of the industry. The industry average Return On Assets is -41.63%. The Piotroski-F score of CLVS is 4.00. This is a neutral score and indicates average health and profitability for CLVS. CLVS's Profit Margin of -1709.08% is worse than the rest of the industry. The industry average Profit Margin is -46.01%. 84% of the industry peers have a better Profit Margin.
With a price book ratio of 10.58, CLVS is valued correctly. The Price/Earnings Ratio is negative for CLVS. In the last year negative earnings were reported. Also next year CLVS is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative. When comparing the price book ratio of CLVS to the average industry price book ratio of 3.84, CLVS is valued more expensive than its industry peers. 86% of the companies listed in the same industry are valued cheaper.
The EPS has grown by an impressive 23.13% over the past year. Based on estimates for the next 2 years, CLVS will show very strong growth in EPS. The EPS will grow by 42.35% on average per year. When comparing the growth rate of the last 5 years to the growth rate of the upcoming 2 years, we see that growth is accelerating.
CLVS has a Current Ratio of 3.26. This indicates that CLVS is financially healthy and has no problem in meeting its short term obligations. CLVS has a Quick Ratio of 3.23. This indicates that CLVS is financially healthy and has no problem in meeting its short term obligations. The Altman-Z score is inline with the industry averages, which is at 1.50. The Piotroski-F score of CLVS is 4.00. This is a neutral score and indicates average health and profitability for CLVS. Compared to an average industry Current Ratio of 4.65, CLVS is worse placed to pay its short term obligations than its industry peers. When comparing the Quick Ratio of CLVS to the average industry Current Ratio of 4.42, CLVS is less able to pay its short term obligations than its industry peers. Compared to an average industry Debt to Equity Ratio of 0.00, CLVS is a more dependent on financing than its industry peers.
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