Clovis Oncology (NASDAQ:CLVS) is on investors’ radars as its shareholder meeting is resuming today. The company partially adjourned its annual shareholder meeting, originally on June 9, until today. The drug maker took the step in order to give the owners of CLVS stock more time to vote on the proposals.
One of the proposals on the agenda is a reverse stock split. As InvestorPlace writer William White explained in his July 2 article on CLVS stock, the company wants to implement the split in order to ensure that its shares stay above $1. The Nasdaq Exchange, where CLVS stock trades, requires companies’ shares to stay above $1. Stocks that fall below $1 for a long period of time can be removed from the exchange.
In order to implement to reverse stock split, Clovis must lower the number of its shares outstanding. Clovis is asking its shareholders to approve such a change today.
CLVS Stock Gets an FDA Update
Clovis held a meeting with the FDA regarding the company’s efforts to get its Rucaparib drug approved for an additional purpose. Specifically, Clovis wants the FDA to approve Rucaparib as “a maintenance treatment … for women with advanced ovarian cancer who have responded to first-line platinum-based chemotherapy.”
However, the FDA is continuing to advise Clovis to obtain additional “overall survival data” of the patients treated with Rucaparib before formally submitting an application for approval of the new indication.
If Clovis chooses to submit the application without additional overall survival data, an Oncologic Drugs Advisory Committee may have to convene to discuss the issue, the FDA stated.
After meeting with FDA officials, Clovis plans to submit the application during the current quarter. Moreover, Clovis is preparing a different version of its Rucaparib application.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
