Clovis Oncology, Inc.CLVS announced the pricing of its underwritten public offering of common stock worth $5 million. The company priced the shares at $41.00, each. Notably the size of the offering was raised to $205 million from $175 million previously.
Clovis' share price gained 40.1% in 2016 compared with Zacks classified Medical-Biomedical and Genetics industry's fall of 24.7%.
Coming back to the latest release, Clovis will provide underwriters with an option to procure up to 750,000 additional shares of its common stock within 30 days. The offering is expected to close on Jan 9, 2017. The company plans to utilize the net proceeds of the offering for general corporate purposes, including commercial planning and sales, and marketing expenses related with the launch of its recently approved advanced ovarian cancer drug, Rubraca (rucaparib) in the U.S. and in the EU, that are subject to approval. The company also aims to use the proceeds for funding of its development programs, general and administrative expenses, acquisition or licensing of additional candidates or businesses and working capital.
We remind investors that the shares of Clovis had hit a 52-week high in Dec 2016, after the company received an accelerated FDA approval for Rubraca. Notably, the approval came more than two months ahead of the schedule. The FDA is expected to render a final decision on Rubraca by Feb 23, 2017.
Rubraca has been approved as monotherapy for patients with deleterious BRCA mutation (germline and/or somatic) associated advanced ovarian cancer, who have been treated with two or more chemotherapies, and selected for therapy based on an FDA-approved companion diagnostic test. This makes Rubraca the first and only PARP inhibitor to be approved by the FDA for this indication.
Meanwhile, Clovis continues to study Rubraca in patients with advanced ovarian cancer who have BRCA gene mutations as well as other types of ovarian cancer.
The company had filed a regulatory application for Rubraca in the EU for a comparable ovarian cancer treatment indication in the fourth quarter of 2016.
Zacks Rank & Key Picks
Clovis currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the health care sector include Cambrex Corporation CBM , Arena Pharmaceuticals, Inc. ARNA and Anika Therapeutics Inc. ANIK . While Cambrex sports a Zacks Rank #1 (Strong Buy), both Arena and Anika carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Cambrex's earnings estimates increased 3.7% for 2016 and 5.2% for 2017 in the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters, with an average beat of 19.78%. Its share price is up 23.5% in the past one year.
Arena posted a positive earnings surprise in three of the four trailing quarters, with an average beat of 11.43%.
Anika's earnings estimates for 2016 and 2017 were up a respective 3.9% and 0.5%, in the last 60 days. The company recorded a positive earnings surprise in each of the last four quarters, the average being 33.14%. Its share price is up 26.9% in the past one year.
CLOVIS ONCOLOGY Price
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