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Clovis (CLVS) Q1 Earnings Beat, COVID-19 Hurts Rubraca Sales

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Clovis Oncology CLVS incurred loss of 64 cents per share for the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 72 cents and the year-ago loss of $1.39 per share.

Net revenues, entirely from Clovis’ only marketed drug, Rubraca, were down 10.6% year over year to $38.1 million in the quarter, missing the Zacks Consensus Estimate of $44.8 million.

Shares of Clovis were up 6.4% on May 5, following first-quarter results. The stock has gained 22.1% so far this year against the industry’s decrease of 6%.

Quarter in Details

Sales of Rubraca, a PARP inhibitor, in the United States were $31.7 million, down 19.3% year over year. Product sales were down due to lower new patient starts amid the COVID-19 pandemic. However, the company expects sales to normalize starting from the second quarter and improve in the second half of 2021.

Ex-U.S. market sales were $6.4 million in the first quarter compared with $3.3 million in the year-ago quarter.

In the first quarter, research & development expenses decreased 23% year over year to $52.8 million, primarily due to lower spending on Rubraca clinical studies. Selling, general and administrative expenses declined 29.8% year over year to $29.9 million, driven by cost-saving initiatives and savings due to the COVID-19 situation globally.

Clovis ended the quarter with $190.9 million of cash equivalents and available-for-sale securities compared with $240.2 million as of Dec 31, 2020.

The company expects its cash resources, along with anticipated revenues and available financing sources, to be enough to support its operations till early 2023.

Update on Rubraca

The company has a collaboration with Bristol-Myers BMY to develop Rubraca and pipeline candidate, lucitanib, in combination with the latter’s PD-L1 inhibitor, Opdivo, for several cancer indications. A phase III study — ATHENA — is evaluating Rubraca as a monotherapy as well as in combination with Opdivo as first-line maintenance treatment for advanced ovarian cancer. Top-line data from the monotherapy arm is expected in the second half of 2021. Interim data from phase II part of phase Ib/II LIO-1 study, evaluating lucitanib in combination with Opdivo as potential treatment for gynecologic cancers, is expected later this year.

A phase II LODESTAR study is evaluating Rubraca in patients with recurrent solid tumors associated with deleterious homologous recombination repair or HRR gene mutations. Data from the study may be used to file a regulatory application in the first half of 2022, seeking approval for Rubraca in HRR patients.

The company plans to initiate a phase I/II study — LuMIERE — in the second quarter of 2021 to evaluate its peptide-targeted radionuclide therapy and imaging agent candidate, FAP-2286, in multiple tumor types.

Clovis Oncology, Inc. Price, Consensus and EPS Surprise

Clovis Oncology, Inc. Price, Consensus and EPS Surprise
Clovis Oncology, Inc. Price, Consensus and EPS Surprise

Clovis Oncology, Inc. price-consensus-eps-surprise-chart | Clovis Oncology, Inc. Quote

Zacks Rank & Stocks to Consider

Clovis currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the drug/biotech sector include Atea Pharmaceuticals, Inc. AVIR and Nabriva Therapeutics AG NBRV, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Atea’s earnings per share estimates have moved up from $3.79 to $8.34 for 2021 and from $16.76 to $17.25 for 2022 in the past 30 days. The stock has soared 757.3% in the past year.

Nabriva’s loss per share estimates have narrowed from $2.03 to $1.95 for 2021 and from $1.35 to $1.22 in the past 30 days. The company delivered an earnings surprise of 46.50%, on average, in the last four quarters.

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