What happened

Clovis Oncology (CLVS), a biopharmaceutical company that specializes in solid-tumor therapies, saw its shares skyrocket 158.9% in June, according to data from S&P Global Intelligence. The stock closed at $0.6953 a share on May 31 and dropped to $0.6367 on June 2. It hit its high for the month at $2.41 on June 21. The volatile stock has a 52-week low of $0.5810 and a 52-week high of $5.92.

So what

The main reasons for Clovis' rise in the month were two positive announcements regarding trials of its therapies. The first, regarding Rubraca, its only marketed therapy, said that a Phase 3 Athena trial on Rubraca showed it was effective as a maintenance monotherapy to fight advanced ovarian cancer in patients who previously responded to chemotherapy.

The other announcement was that Clovis' targeted radionuclide therapy, FAP-2286, had a strong safety profile in its Phase 1/2 trial against solid tumors.

There was also a less tangible reason for Clovis' rise. There were rumors of a potential buyout of the company by pharmaceutical giant Bristol Myers Squibb, with which Clovis already has several clinical partnerships.

Now what

Expect more volatility for the biotech stock as several events in the near future could affect its share price. Bear in mind, too, that Clovis is nowhere near being profitable, though its pipeline of oncology therapies includes additional uses for Rubraca, FAP-2286, and three as-yet unnamed targeted radionuclide therapies.

In the first quarter, the company reported revenue of $34.2 million, all from Rubraca, which has been approved for adults with primary recurrent epithelial ovarian, fallopian tube, and peritoneal cancer. However, the company also had a net loss of $60.2 million, or $0.44 per share. Clovis could pay off as an investment, but that will hinge on it broadening uses for Rubraca or for Clovis to continue to see solid results in studies on FAP-2286.

The Food and Drug Administration is being cautious regarding Rubraca; it just told Clovis on July 6 that the company should wait for more mature data before filing a supplemental new drug application for the drug as a monotherapy for advanced ovarian cancer. That news is likely to weigh on the stock for a bit. In the short term, the stock's rise has allayed worries that it would be delisted from the Nasdaq, though the company has considered a reverse split.