There's a lot more in the PR, but here is the relevant details. (see the PR for more):
Under the terms of the deal, Clovis is acquiring EOS for an up-front payment of $200 million , which includes $190 million in Clovis common stock (3,713,731 shares) and $10 million in cash. Clovis will pay an additional $65 million in cash upon the initial approval of lucitanib by the U.S. Food and Drug Association ( FDA ). Pursuant to the license agreement with Servier, Clovis is entitled to receive up to EUR350 million (approximately $470 million ) upon the achievement of development and commercial milestones, as well as royalties on sales of lucitanib in the Servier territories. Clovis will also pay the EOS shareholders up to an additional EUR115 million in cash (approximately $155 million ) upon the receipt by Clovis of certain of the milestone payments pursuant to the Servier license agreement.
Clovis and Servier will collaborate on the development of lucitanib pursuant to a mutually-agreed upon global development plan. Servier is responsible for the initial EUR80 million (approximately $108 million ) of costs under the global development plan and costs above EUR80 million will be shared equally between the companies.
Clovis intends to host an R&D Day and webcast for institutional investors and analysts to detail its clinical development programs for CO-1686, lucitanib and rucaparib next January in New York City .
Long CLVS. Secondary occurred at $72, and last week phase 2 confirmed the good news. Stock should be high $60's to 70. The Pop was sold shorts in probably. Good opportunity to get long.
Sentiment: Strong Buy
CLVS can be a good takeout candidate at around $90-140 3B-4B
Recent data in phase 2 all points look good.
Betting long CLVS!!!
Sentiment: Strong Buy
Covered between $49 and $50 today. Looks like it's forming a base here, so I'll move on. Ecstatic with the trade, but would not be surprised to see it at $40 in the near future.
As posted here in June, I went short just under $84. My plan was to ride it down back to $40, but I think it prudent to lock in some gains here, from what has turned into a very nice trade. So I covered half of my position between $54.06 and $54.21 a little while ago, and will let the rest run a while. Pretty sure I'll get my $40, but won't cry if I don't make it completely there. We'll see.
Good luck all.