What happened
Shares of the cancer drugmaker Clovis Oncology (CLVS +0.00%) are under pressure yet again today. As of 12:47 p.m. ET on Monday, the company's stock price was down by a noteworthy 12.8% on relatively modest volume. After this latest dip, Clovis' stock is down by over 46% for the year.
What's weighing on Clovis' stock today? The biotech released its 2022 second-quarter earnings report ahead of the opening bell Monday morning, and its latest financial results aren't a hit with shareholders.
So what
Investors appear to be hitting the exits today over three areas of concern:
- Clovis' flagship drug Rubraca pulled in a meager $32.1 million for the quarter, which represents a 13% drop in year-over-year sales. The company blamed COVID-19 and competing drugs for this double-digit sales decline.
- Clovis posted an eye-popping $71.3 million net loss for the quarter. With $94.6 million in cash and cash equivalents as of June 30, the biotech is facing a serious cash crunch.
- Speaking to this point, management noted in today's earnings release that it is seeking ways to raise additional capital, which could include licensing out its lead clinical asset FAP-2286.
OTC: CLVS
Key Data Points
Now what
Is Clovis' stock worth buying on this latest pullback? While the company ought to be able to land a fairly decent licensing agreement for FAP-2286, a licensing deal probably won't be enough to solve its long-term financing needs. Rubraca's sales have to pick up soon. And until the company solves this all-important issue, its stock simply isn't worth the risk.
