Clovis Oncology (CLVS) PT Reduced to $50 at Goldman Sachs Due to Competition

Goldman Sachs maintained a Neutral rating on Clovis Oncology (NASDAQ: CLVS) and reduced its price target to $50.00 (from $85.00). '1686 estimates were lowered to account for increased competition.

Analyst Terence Flynn said, "Last night, AZN (NYSE: AZN) hosted an analyst event at ASCO and provided more clarity on the profile of ‘9291, its plans in the front-line (FL) setting, its combination strategy, as well as filing timelines. As a result we are lowering our ‘1686 front-line market penetration to 50% from 75%, which reduces our estimates and price target. Our new ‘1686 adjusted peak estimate is $1.3bn from $2bn."

"AZN’s commitment to the entering the front-line setting had been an outstanding question up until now. AZN also stated that they plan to file for FDA approval of ‘9291 in 2H15 for T790M+ patients with the possibility to file earlier (1Q15) depending on dialogue with FDA. This is compared to CLVS’ guidance of filing ‘1686 in mid-2015. Net net we leave ASCO with a view that not only are the profiles very similar, but so are the development timelines. The one advantage that AZN might have over CLVS is its broader cancer portfolio that allows the company to explore various combinations with ‘9291 (including PD-L1, MEK and c-MET)," 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 $47.75 yesterday.

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