Morgan Stanley Initiates Coverage of Clovis Oncology with Overweight Rating

Clovis Oncology (CLVS) rose about 5% to a 14-year high after Morgan Stanley initiated coverage for shares of the biopharmaceutical company with an Overweight rating and a price target of $68.

Morgan Stanley analyst Andrew Berens said that Clovis is “likely to successfully navigate the nuances of the ovarian cancer market to carve out a durable niche for Rubraca.”

Rubraca, or rucaparib, is Clovis’ monotherapy for the treatment of women with advanced ovarian cancer.

Berens said further that the IP for Rubraca could be benefited by full approval in ovarian cancer, as this could delay formal challenges for the ‘072 patent, which discloses solid dosage forms of rucaparib maleate and rucaparib camsylate. The analyst firm estimates that each additional year of exclusivity beyond its assumed date of exclusivity of 2028 could add about $4 – $8 in risk-adjusted net present value per share.

By Sparta Contributor