Clovis Oncology: Revisiting After ARIEL3 Success

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About: Clovis Oncology, Inc. (CLVS), Includes: TSRO
by: Jonathan Faison
This article is exclusive for subscribers.
Jonathan Faison
Long only, biotech, event-driven
Summary

Shares have risen quite a bit as a result of ARIEL3 data.

The upsized secondary offering has taken dilution risk off the table until later in 2018.

Wall Street's negative reaction to Bristol-Myers Squibb collaboration appears overdone, as the takeout thesis still appears on the table.

Valuation gap to Tesaro is quite striking.

Near-term pressure on shares could be a gift for investors with a longer-term time frame.

Shares of Clovis Oncology (NASDAQ:CLVS) have risen around 40% since highlighting the stock in January, when I noted that ovarian cancer was just the beginning of the franchise management is trying to build