Clovis Oncology CLVS incurred loss of $1.11 per share for the second quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $1.02 but narrower than the year-ago loss of $1.63 per share.
Net revenues, entirely from Clovis’ only marketed drug, Rubraca, were up almost 21% year over year to $39.9 million in the quarter. However, revenues missed the Zacks Consensus Estimate of $44.65 million. Total sales of Rubraca were down 6.3% sequentially due to fewer new patient starts amid coronavirus related stay-in-home and other travel restrictions. The company stated that the COVID-19 related situation remains uncertain and it is difficult to predict future sales of the drug.
Shares of Clovis were down almost 5.5% in after-market trading on Aug 6, following the dismal earnings announcement. The stock has plunged 44.9% so far this year against the industry’s increase of 5.5%.
Quarter in Details
Sales of Rubraca, a PARP inhibitor, in the United States were $36.7 million, compared with $32.7 million in the second quarter of 2019. Ex-U.S. market sales were $3.2 million in the second quarter compared with $3.3 million in the first quarter of 2020.
In the second quarter, research & development expenses decreased 1.1% year over year to $69.9 million. Selling, general and administrative expenses declined 12.7% year over year to $41.9 million, driven by cost-saving initiatives and savings due to the COVID-19 situation globally.
Clovis ended the quarter with $261.4 million of cash equivalents and available-for-sale securities compared with $228.4 million as of Mar 31, 2020. The increase was led by net proceeds of $82.8 million through equity offering in May.
The company expects its cash resources to be enough to support its operations into early 2022.
Update on Rubraca
In May, the FDA approved the label expansion of Rubraca as monotherapy for BRCA-mutant recurrent, metastatic castrate-resistant prostate cancer (mCRPC).
A phase III TRITON3 study evaluating Rubraca in mCRPC patients with BRCA mutation and ATM mutation, and who have not received chemotherapy is currently enrolling patients.
The company has a collaboration with Bristol-Myers BMY to develop Rubraca and pipeline candidate, lucitanib, in combination with the latter’s PD-L1 inhibitor, Opdivo, for several cancer indications. The phase III ATHENA study is evaluating Rubraca plus Opdivo as first-line maintenance treatment in advanced ovarian cancer. In June, the companies completed enrollment in the study. A phase II study —FRACTION-GC — to evaluate doublet and triplet combination of Rubraca and Bristol-Myers’ Yervoy and Opdivo in patients with advanced gastric cancer is also enrolling patients.
A phase II LODESTAR study is evaluating Rubraca in patients with recurrent solid tumors associated with the deleterious homologous recombination repair or HRR gene mutations. Based on the company’s interaction with FDA, it stated that data from the study may be used to file a regulatory application in 2021, seeking approval for Rubraca in HRR patients.
Clovis Oncology, Inc. Price, Consensus and EPS Surprise
Clovis Oncology, Inc. price-consensus-eps-surprise-chart | Clovis Oncology, Inc. Quote
Zacks Rank & Stocks to Consider
Clovis currently has a Zacks Rank #2 (Buy).
A couple of other top-ranked stocks from the drug/biotech sector include Emergent Biosolutions Inc. EBS and Horizon Therapeutics HZNP, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Emergent Biosolutions’ earnings per share estimates have moved up from $3.45 to $3.58 for 2020 in the past 30 days. The company delivered an earnings surprise of 127.41%, on average, in the last four quarters. The stock has risen 145.7% so far this year.
Horizon Therapeutics’ earnings per share estimates have increased from $1.78 to $2.00 for 2020 in the past 30 days. The company delivered an earnings surprise of 43.99%, on average, in the last four quarters. The stock has surged 97.9% so far this year.
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