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Why Clovis Oncology Stock Rose 48% in November


Dec. 4 2018, Published 8:07 a.m. ET

Stock performance

On December 3, Clovis Oncology stock closed at $19.08, which represents ~10.87% growth from its close of $17.21 on November 30. Clovis Oncology’s stock price grew from $11.63 at the close of business on October 31 to $17.21 at the close of the market on November 30, which reflects ~48% growth in November.

On December 3, Clovis Oncology stock closed at $19.08, which is an ~72% decline from its 52-week high of $69.02 on December 29, 2017. After the company hit its 52-week low of $11.50 on October 31, the stock witnessed solid growth in November.

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Reasons for the stock hike

Clovis Oncology’s stock price rose in November after the company released its third-quarter financial results on October 30. Clovis Oncology reported net revenues of $22.8 million in the third quarter, which reflects ~35% YoY (year-over-year) growth. Clovis Oncology’s revenues are mainly from Rubraca’s sales.

In the third quarter, Clovis Oncology’s peers in the biopharmaceuticals market, Puma Biotechnology (PBYI), Exelixis (EXEL), and Tesaro (TSRO) generated revenues of $62.6 million, $225.4 million, and $64.40 million, respectively—compared to $6.1 million, $152.5 million, and $142.77 million in the third quarter of 2017.

Clovis Oncology, Puma Biotechnology, Exelixis, and Tesaro’s revenue growth could boost the SPDR S&P Biotech ETF’s (XBI) shares prices. The companies account for ~2.93%, ~2.97%, ~2.61%, and ~3.08% of XBI’s total portfolio holdings.

The company’s net operating expenses during the first nine months of 2018 amounted to $301.9 million—compared to $212.9 million during the same period in 2017.

Clovis Oncology’s net income and diluted EPS during the first nine months of 2018 amounted to -$268.8 million and -$5.18, respectively, compared to -$294.5 million and -$6.39 during the same period in 2017.

Analysts’ recommendations

Among the 12 analysts tracking Clovis Oncology in December, two recommended a “strong buy,” five recommended a “buy,” and five recommended a “hold” in December.

On December 4, Clovis Oncology had a consensus 12-month target price of $23.7, which represents an ~24.21% return on investment over the next 12 months.


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