Tag Archives: clvs

Valeant CEO Is Brave; Clovis PT Slashed; Buy Jazz ‘Aggressively’?

Drugmakers and biotechs were on the move Tuesday as Valeant Pharmaceuticals ( VRX ) CEO J. Michael Pearson finally agreed to attend a Senate deposition, and Clovis Oncology ( CLVS ) continued to tumble after an FDA panel didn’t back an accelerated approval for a lung cancer drug. Meanwhile, Jazz Pharmaceuticals ( JAZZ ) and Medivation ( MDVN ) rallied. Valeant CEO J. Michael Pearson said Wednesday he would comply with a congressional subpoena and testify before the Senate Special Committee on Aging on April 18. He didn’t show up to a hearing last week on drug pricing. Valeant shares inched up fractionally in the stock market today despite having  plunged 4% in late trading Tuesday  after the pharmaceutical giant said creditors had submitted a default notice over delays in its annual report. Valeant has until June 11 to file its 10-K annual report or face a default. But a default seems unlikely, as the company said it would file its 10-K by April 29. Clovis shares fell 9% on continued fallout from a Food and Drug Administration panel ruling Tuesday. The independent panel didn’t recommend that Clovis’ lung cancer drug, rociletinib, receive accelerated approval and said the FDA should wait for results from a late-stage trial before making a decision. Clovis lost 5.45% on Tuesday, 4.5% on Monday and 17.7% on Friday, when FDA staff released some documents ahead of the panel meeting. A similar drug from AstraZeneca ( AZN ) received accelerated approval last year. AstraZeneca shares rose 0.6%. Mizuho lowered Clovis’ price target to 15 from 21. Credit Suisse and JPMorgan both downgraded Clovis to neutral from overweight. JPMorgan cut its price target on the stock to 15 from 42 — and down from 110 last November Medivation jumped nearly 7% on takeover buzz. Late Tuesday,  Bloomberg reported that Medivation rejected a takeover attempt from France’s Sanofi ( SNY ). Sanofi is looking to expand its cancer treatment offerings but is currently embroiled in a whistleblower suit over alleged corporate kickbacks. Sanofi shares rose 0.9%. Jazz Pharmaceuticals shares jumped nearly 5% to 146.55, climbing over its 200-day moving average after Cowen released a note saying to “add aggressively” to Jazz positions after a ruling by the U.S. Patent and Trademark Office on Tuesday. The firm has a outperform rating and 190 price target on the stock.

Valeant Dives As Bondholder Seeks Default; Buyout Buzz Lifts Medivation

Valeant Pharmaceuticals ( VRX ) fell in late trade after Valeant said bondholders submitted a default notice, citing delays in the drugmaker’s annual report. Meanwhile, Medivation ( MDVN ) jumped late on a Bloomberg report , citing sources, that the drugmaker rejected a takeover overture from Sanofi ( SNY ). Valeant fell more than 6% in early after-hours action, pared losses to 4%. Shares closed up 2% at 31.99. Dow Jones, which initially reported the news, said Centerbridge Partners was a bondholder seeking the default notice. Valeant has until June 11 to file its 10-K annual report or be compelled to repay bonds early. Valeant has said it will file by April 29. Centerbridge, which holds some $250 million in Valeant debt, may be seeking concessions rather than a default. Meanwhile, Medivation jumped more than 9% after hours following a 1.1% gain to 45.73 at the close. Sanofi was little changed after hours. Sanofi hasn’t ruled out a hostile bid for Medivation, Bloomberg reported. Sanofi would like to expand its cancer drug portfolio. It was a wild day for some drugmakers. Horizon Pharmaceuticals ( HZNP ) dived 26%, close to its October lows. Horizon gave  weak sales guidance . Meanwhile, Clovis ( CLVS ) fell 5.4% to 14.24 after tumbling intraday to 12.25. An FDA advisory panel overwhelmingly opposed early approval for Clovis’  lung cancer drug, saying the agency should await phase 3 data for rociletinib. The stock had fallen 17.7% on Friday and 4.5% on Monday after the panel’s documents were released  

Clovis Stumbles, AstraZeneca Leads Cancer Drug Race

Biotech Clovis Oncology (CLVS) plummeted to a two-year low in early trading Monday after the FDA said it wanted more data showing its cancer drug candidate worked before approving it. Meanwhile, major pharma AstraZeneca (AZN) rose after its competing drug won approval three months ahead of schedule. Both Clovis’ drug rociletinib and AstraZeneca’s Tagrisso (osimertinib) target a subgroup of lung-cancer patients with epidermal growth factor