However, shares of CLVS stock are down about 5% today after August’s consumer price index (CPI) reading came in higher than expected. For August, the CPI level was 8.3% year-0ver-year (YOY), while economists were expecting 8.1%. Core inflation rose by 6.3% YOY and 0.6% month-over-month (MOM). Economists were expecting 6.1% and 0.3%, respectively. With higher than expected inflation, the Fed is more incentivized to raise rates and maintain them.
What exactly do higher rates have to do with Clovis Oncology? During Q2, the company reported a net loss of $71.3 million, or an earnings per share (EPS) loss of 50 cents. Clovis’ unprofitability means that its valuation depends on the value of discounted future flows. As a result, Clovis is highly susceptible to interest rates. This is because higher interest rates discount future cash flows back to the present value at a lower value.
What’s Going on With CLVS Stock Today?
The trial, named ATHENA, is a double-blind placebo trial that seeks to find the effects of rubraca as a first-line ovarian cancer maintenance treatment. Results from the ATHENA-MONO, or the placebo trial, have already been presented. Results from the ATHENA-COMBO trial, or rubraca plus nivolumab versus rubraca, are expected to be released in Q1 next year.
The results of the ATHENA-MONO trial showed that that rubraca improved progression-free survival in comparison with the placebo across several disease risk subgroups. These subgroups included surgical outcome and response to first-line chemotherapy. The trial enrolled 588 woman with “high-grade ovarian, fallopian tube, or primary peritoneal cancer.”
Rebecca S. Kristeleit, MD, PhD, who presented the findings, explained:
“”In this analysis, rucaparib prolonged progression-free survival for patients with or without high risk factors for progression, irrespective of molecular characteristics, adding to our understanding of the efficacy of rucaparib in the broadest population of patients assessed in a clinical trial for first-line PARP inhibitor monotherapy.”
Clovis announced today that it has submitted a new drug application with the Food and Drug Administration (FDA). The company also submitted a Type II variation with the European Medicines Agency.
On the date of publication, Eddie Pan 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.