Clovis Oncology (CLVS) Reiterated Outperform at Leerink Swann as Race with AstraZeneca (AZN) Heats Up

September 30, 2013 10:55 AM EDT
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Price: $58.29 +2.07%

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Leerink Swann maintained an Outperform rating on Clovis Oncology (NASDAQ: CLVS) with a price target of $88.00. Comments follows data from AstraZeneca's (NYSE: AZN) AZD-9291.

"At ESMO, AZD-9291 had positive data and represents strong competition to CLVS' CO-1686 in a large sand box narrowly defined by T790M+ patients and broadly by the entire nonsmall cell lung cancer (NSCLC) market," said analyst Marko Kozul. "Net-net, a MEDACorp key opinion leader (KOL) at ESMO believes AZN (MP) and CLVS are in a close first-to-market race, with resources likely to define the winner."

"ESMO AZD-9291 data demonstrate it is a strong competitor even at the 20mg dose, with potential improvement from further dose escalation just as CLVS may benefit from dose escalation with its 500mg BID bromide salt formulation and beyond. Positive Rucaparib data at ESMO continue to de-risk this compound, which should generate more value in 2014+. Assuming AZD-9291/CO-1686 split the T790M+ market, our DCF would still yield $68, with upside from front-line NSCLC penetration and Rucaparib. We reiterate our Outperform rating, $88 price target (PT) and would take advantage of any volatility going into World Lung at the end of
October," he added.

For an analyst ratings summary and ratings history on Clovis Oncology click here. For more ratings news on Clovis Oncology click here.

Shares of Clovis Oncology closed at $60.59 yesterday.

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