Good news and bad news for Clovis cancer drug


Shares of Clovis (CLVS -10.9%) are down on higher volume after the company fumbled how it presented data on CO-1686 at ASCO. The BTD-designated EGFR inhibitor is being studied for the treatment of non-small cell lung cancer.

Positive buzz was generated by a presentation of interim Phase 2 data by a Harvard Medical School Professor that implies progression-free survival of 12 months.

The stumble occurred later during an off-site analyst meeting where the company disclosed that "three or four" patients had to initiate insulin therapy after becoming resistant to metformin. The way the firm chose to disclose a potential hyperglycaemia risk prompted some observers to question its transparency.

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Comments (2)
  • User 20948001
    , contributor
    Comment (1) | Send Message
     
    I think the reaction is way over blown. Hyperglycemia in 22% of patients is easily managed with Metformin. Even if a few patients need to go on insulin pales in comparison to losing your life to lung cancer. The progression free survival time has not been met which supports why this drug recently got expedited approval. This is a homerun for patients who developed resistance to other EGFR inhibitors. This is a 3 billion market probably split up with AZN. They have two other promising drugs phase1/2 addressing big markets, and all of this at a valuation of 1.5 billion? Pfizer, rather than chase AZN, should buy Clovis as a complement to its ALK inhibitor so that it has 2 of the major targets in NSCLC (EGFR and ALK) in its drug pipeline.
    2 Jun 2014, 01:09 PM Reply Like
  • sophocles
    , contributor
    Comments (232) | Send Message
     
    I thought it was a buying opportunity. I bought some near day's low. We will see. CLVS market cap is only $1.5b, would do wonders for it if a blockbuster drug is approved.
    2 Jun 2014, 01:32 PM Reply Like
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