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Why Clovis Oncology Stock Skyrocketed Today

By Joe Tenebruso - Mar 19, 2021 at 4:30PM

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The biotech's experimental cancer treatment demonstrated promising results in a clinical trial.

What happened 

Shares of Clovis Oncology (CLVS -5.29%) soared 48% on Friday after the biopharmaceutical company announced positive findings from its phase 3 study for its ovarian cancer drug, Rubraca. 

So what 

Data from the clinical trial showed Rubraca to significantly improve progression-free survival (PFS) compared to standard-of-care chemotherapy among patients with advanced, relapsed ovarian cancer and a specific gene variant, known as a deleterious BRCA mutation.

The study enrolled 349 women in multiple countries. The median PFS for the patients treated with Rubraca was 7.4 months, compared to 5.7 months for those who received chemotherapy.

A person is pointing to an upwardly sloping line.

Clovis Oncology's stock price surged on Friday. Image source: Getty Images.

Clovis Oncology said the adverse events observed among the study's participants, such as anemia and fatigue, were consistent with the known safety profiles of Rubraca and chemotherapy.

"We remain committed to expanding treatment options for patients living with cancer and are pleased to share these data with physicians and their patients to help improve outcomes for women with ovarian cancer," Clovis Oncology CEO Patrick Mahaffy said in a press release.

Now what

More than 21,000 women will be diagnosed with ovarian cancer in the U.S. alone this year, according to the American Cancer Society. Worse still, nearly 14,000 of these women are likely to die from the disease. Rubraca could potentially give doctors another tool to combat this far-to-often deadly form of cancer.

Thus, should it receive regulatory approval, demand for Rubraca would likely be strong -- which is why investors bid up Clovis Oncology's stock price so sharply today.

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