Clovis Oncology Inc (NASDAQ:CLVS) is soaring today, currently up 50 percent at an even $90.00 – a $30.03 boost from Friday’s closing price. Additionally, the stock’s volume is skyrocketing with nearly 11 million shares already sold today. On a typical trading day, only about 1.6 million shares of Clovis change hands.
Before the market open, the cancer therapeutics company announced promising data from a Phase 3 clinical trial evaluating its cancer treatment – rucaparib. The product, which has already been approved by the US Food and Drug Administration (FDA) via accelerated approval, achieved the study’s primary endpoint as well as an important secondary endpoint.
Rucaparib was being assessed in a Phase 3 program called the “ARIEL3” trial, which enrolled 564 women diagnosed with platinum-sensitive, high-grade ovarian, fallopian tube, or primary peritoneal cancer. The patients participating in the double-blind, placebo-controlled study were members of multiple molecular subgroups – each having certain tumor mutations or testing positive for a certain gene.
In the Phase 3 program, all three of the types of cancer being evaluated demonstrated improved progression-free survival (PFS) compared to the placebo group.
“We are very pleased with these positive ARIEL3 topline results that strongly demonstrate the potential of rucaparib to help women with platinum-sensitive, advanced ovarian cancer,” said the company’s President and Chief Executive Officer, Patrick J. Mahaffy. “These results reinforce the potentially foundational role of rucaparib in the management of advanced ovarian cancer, as demonstrated by both investigator review and the blinded independent central review.”
Thanks to the new data, Clovis says that it will send a supplemental New Drug Application (sNDA) within the next four months – but this time as a second-line treatment and post-therapy maintenance treatment.
Since Clovis made the promising clinical data public this morning, a number of Wall Street analysts have weighed in on the news. Bank of America Merrill Lynch’s Tazeen Ahmad reiterated a Buy rating on the company’s stock – while lifting the 12-month price target from $75.00 to $103.00.
Similarly, Stifel’s Thomas Shrader told investors earlier today that he was reaffirming a Buy rating and raising his price target on Clovis from $86.00 to $125.00.
“Overall, we see ARIEL3 as in line with expectations – it’s a very powerful PARP inhibitor,” Shrader said this morning. “The trial results should equip Clovis with powerful real world ammunition for the upcoming commercial battle with Tesaro and AZ.”
The author of this article holds no position in any of the companies mentioned above.