Please ensure Javascript is enabled for purposes of website accessibility

Clovis Oncology's Sales Growth Slows in Q4

By Brian Orelli, PhD - Feb 24, 2020 at 5:05PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Sales of Rubraca are still up 30% year over year, but the growth was well short of the 50% pace the biotech set for the year.

Clovis Oncology (CLVS 0.00%) closed out last year with fourth-quarter sales of its cancer drug Rubraca up 30% year over year to $39.3 million. The figure was at the high end of the preliminary sales estimate the company announced in January, but it still represents a slowdown in growth for the entire year when sales increased 50% year over year.

The biotech gave away $8 million worth of the drug, which was 18% of the commercial supply. While still a substantial amount, Clovis has improved coverage of the drug by payers; this time last year, the supply of free drug was 26% of the commercial supply.

Doctor with her hand on a patient's shoulder

Image source: Getty Images.

For the quarter, Clovis lost $99.5 million, or $1.81 per share, as the company spent $72.5 million on research and development on clinical trials to expand the use of Rubraca into other types of cancer and on developing earlier-stage pipeline candidates.

Clovis ended the year with $296.7 million in the bank, which management thinks will get the company into the second half of next year. Unfortunately, the company has $97.2 million in convertible notes that come due in September 2021, which Clovis will either have to refinance or let convert to stock, diluting current shareholders.

Looking ahead, Clovis is launching Rubraca for the maintenance treatment of recurrent epithelial ovarian, fallopian tube, or primary peritoneal cancer in Germany, England, Italy and France, and a launch in Spain is expected shortly. In the U.S., Clovis is waiting for Food and Drug Administration approval of the drug for advanced prostate cancer, which is expected on or before May 15.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Clovis Oncology, Inc. Stock Quote
Clovis Oncology, Inc.
$1.71 (0.00%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.