Piper Jaffray analyst Steven Breazzano remains sidelined, but optimistic on Clovis Oncology Inc (NASDAQ:CLVS) following the firm’s conference call discussing FDA approval of Rubraca, a PARP inhibitor designed to treat women with advanced BRCA ovarian cancer.
In reaction, the analyst reiterates a Neutral rating on shares of CLVS while lifting the price target from $40 to $43, which represents a 5% downside from where stock is currently trading.
Breazzano asserts, “With early approval, the company remains well positioned to enter the ovarian cancer market, and will price Rubraca at $13,740/mo, a slight premium to Lynparza (~ $12k/mo). That said, we continue to believe that the maintenance setting will ultimately prove key for the broader ovarian market, and that 2017 will be an important year with both FDA decisions (TSRO, AZN) and data (CLVS) that should help further define CLVS’ uncertain position in the maintenance setting.”
To reflect an earlier launch, the analyst models revenues now in the first quarter as opposed to a prior model anticipating a launch in the second quarter of 2017 as well as “incrementally higher revenues beyond, reflecting a slight premium to Lynparza.”
Looking ahead, Breazzano anticipates a “strong launch in the coming weeks,” surmising that long-term prospects will be crucial and ultimately, 2017 will be “defining” for the biotech firm- perhaps even the game-changer that sways him away from the sidelines.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, three-star analyst Steven Breazzano is ranked #1,656 out of 4,286 analysts. Breazzano has a 77% success rate and earns 5.4% in his annual returns. When suggesting CLVS, Breazzano gains 0.0% in average profits on the stock.
TipRanks analytics indicate CLVS as a Buy. Out of 8 analysts polled by TipRanks in the last 3 months, 3 are bullish on Clovis Oncology stock, 4 remain sidelined, and 1 is bearish on the stock. With a loss potential of nearly 9%, the stock’s consensus target price stands at $41.25.
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