Why Is Clovis Oncology (CLVS) Stock Down 10% Today?

  • Clovis Pharmaceuticals (CLVS) is down about 10% today after a disappointing earnings call.
  • The company missed on revenue and earnings for the fourth straight quarter.
  • While the company was hopeful about its clinical-stage treatments, it also revealed continued funding concerns.
CLVS stock - Why Is Clovis Oncology (CLVS) Stock Down 10% Today?

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Clovis Oncology (NASDAQ:CLVS) stock is down more than 10% today after posting its second-quarter financial results. The biopharmaceutical company missed on revenue and profits, leading the way for today’s selloff.

This morning, Clovis announced its earnings for the quarter ended June 2022. The company reported an earnings per share (EPS) loss of 43 cents, a narrower decline compared to the 61-cent loss per share in the same quarter last year. This represents an earnings miss of about 2%.

The company announced revenue of $32.14 million in Q2, missing consensus estimates by about 15%. For context, in Q2 2021, Clovis reported revenue of $36.82 million. This marks the fourth-consecutive quarter of revenue misses for the cancer-treatment company.

Clovis also offered investors a window into its current developments and cost-cutting efforts. The company was happy to report a dramatic 20% reduction in research and development (R&D) expenses, equivalent to $9.3 million. Clovis also lowered its operating cash by 40%, or $23.4 million, compared to Q1 of this year.

CLVS Stock Slides Despite Promising Clinical Trials

Clovis used its earnings call to draw attention to a number of hopeful projects currently making rounds in clinical trials. The company highlighted its Phase 3 ATHENA Trial of its Rubraca monotherapy, a treatment for ovarian cancer. The treatment was featured at the 2022 American Society of Clinical Oncology (ASCO) annual meeting, alongside a publication in the Journal of Clinical Oncology.

Patrick J. Mahaffy, president and chief executive of Clovis commented on the promising outlook the company has for the treatment.

“Turning to Rubraca, following the positive results from ATHENA-MONO, we believe Rubraca represents an important new option as a front-line maintenance treatment of ovarian cancer, and we are on track for submissions to the FDA and EMA during the third quarter of 2022.”

Despite the company’s bright outlook, in the short term, Clovis is in something of a pinch. In the earnings call, the company revealed it will need to raise additional funding to continue its operating plan beyond February 2023. One proposed solution was a reverse stock split of Clovis common stock that would increase the number of shares the company could issue. Unfortunately, the proposal failed to pass at its 2022 shareholder meeting, despite earning 58% support.

CLVS is down nearly 40% this year as an outweighed victim of this year’s bear market. Whether its clinical aspirations come to fruition through the rest of the year remains to be seen.

On the date of publication, Shrey Dua 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.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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