Clovis Oncology (NASDAQ:CLVS) stock is crashing on Wednesday as investors react to news of the company running out of cash.
According to a recent filing from Clovis, there’s a strong chance that it files for bankruptcy in the near future. This comes as the company has trouble selling its cancer drug Rubraca.
Clovis Oncology notes that, with its cash on hand and even with expected revenue from Rubraca, the company still won’t be able to continue operations beyond January 2023. The company says it will continue to evaluate its strategic options even as bankruptcy looms.
Clovis Oncology provided the following details in a filing with the U.S. Securities and Exchange Commission (SEC):
“We have incurred significant net losses since inception and have relied, almost entirely, on debt and equity financings to fund our operations. We expect operating losses and negative cash flows to continue for the foreseeable future even with Rubraca generating revenues. Rubraca revenues have not been consistent in prior quarters and have been trending downward during the past two years.”
CLVS Stock Investors Are Jumping Ship
Heavy trading follows today’s news as holders of CLVS stock sell their shares. As a result, some 35 million shares of the penny stock have changed hands as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 2.9 million shares.
CLVS stock is down 72% as of Wednesday afternoon and down 91.3% since the start of the year.
Investors looking for more of the latest stock market news will want to stick around!
We’ve got all of the latest stock market news for Wednesday, including loads of layoffs stories! A few worth checking out include those from Astra Space (NASDAQ:ASTR), Intel (NASDAQ:INTC) and Meta Platforms (NASDAQ:META). You can learn all about these topics at the following links!
More Wednesday Stock Market News
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- Intel Layoffs 2022: What to Know About INTC Job Cuts, Hiring Freeze
- Mark Zuckerberg Confirms: Meta Layoffs Will Cut 11,000 Employees
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On the date of publication, William White 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.