Piper Jaffray Assumes Clovis Oncology (CLVS) at Neutral

Piper Jaffray assumes coverage on Clovis Oncology (NASDAQ: CLVS) with a Neutral rating and a price target of $18.00 (from $28.00).

Analyst Steven Breazzan commented, "We are assuming coverage of Clovis Oncology with a Neutral rating and an $18 PT ($28 prior) as we do not have enough confidence ahead of a key binary event (rociletinib ODAC/ PDUFA) to justify a more constructive outlook at this time. With the updated rociletinib efficacy data falling short of AstraZeneca’s Tagrisso, we struggle to see a clear regulatory and commercial path forward and are remaining on the sidelines. Behind rociletinib, the company's PARP inhibitor, rucaparib, has demonstrated early signs of clinical benefit, but again runs into an AZN drug already approved with a similar mechanism (Lynparza), and we are not convinced that rucaparib has demonstrated clear differentiation in what looks like a small and crowded market. In sum, CLVS is a player in the attractive area of targeted oncology therapy and we view CLVS’ risk/reward profile at current levels as sufficiently balanced given the uncertainty with rociletinib and competitive landscape with rucaparib."

For an analyst ratings summary and ratings history on Clovis Oncology click here. For more ratings news on Clovis Oncology click here.

Shares of Clovis Oncology closed at $19.37 yesterday.

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