Clovis Oncology Inc (NASDAQ:CLVS) shares are under pressure today after the biotech firm presented additional detailed efficacy and safety data from the NDA dataset of solid tumor-treating pipeline drug rucaparib in ovarian cancer at the European Society for Medical Oncology (ESMO) conference. The presentation indicates response rates in the platinum resistant and platinum refractory fall below levels that some were anticipating at 25% and 0%, respectively.
On back of the results that are “seemingly negative on the surface,” Piper Jaffray analyst Steven Breazzano believes “all signs point to an approval in the 3L+ setting early next year” and this ultimately detracts from the real matter at hand: whether the ovarian cancer drug can succeed in earlier maintenance setting, which as far as the analyst is concerned is where the majority of prospective opportunity subsides.
Following the conference, Breazzano reiterates a Neutral rating on shares of CLVS with a $42 price target, which represents a nearly 38% increase from where the stock is currently trading.
“As none of this data is new to the FDA (and we note there is no ODAC expected) and priority review was granted, we continue to believe CLVS will be approved in BRCA patients who have received 2+ lines of therapy, an earlier and broader patient population (tissue BRCA vs just germline BRCA) than AZN’s Lynparza based on the overall high response rates and positive clinician feedback. Furthermore, we believe the ultimate market potential and key to success is the maintenance setting, for which niraparib is still best-positioned based on the Phase 3 NOVA dataset,” Breazzano concludes.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, four-star analyst Steven Breazzano is ranked #1,177 out of 4,190 analysts. Breazzano has an 89% success rate and realizes 12.8% in his annual returns. When recommending CLVS, Breazzano earns 0.0% in average profits on the stock.
TipRanks analytics demonstrate CLVS as a Buy. Based on 7 analysts polled in the last 3 months, 3 rate a Buy on CLVS, while 4 maintain a Hold. The 12-month price target stands at $36.33, marking a 17% upside from where the shares last closed.