Clovis Oncology’s stock surges after positive clinical results

BOULDER — Clovis Oncology Inc. (Nasdaq: CLVS), a biotech firm specializing in cancer research, is seeing a surge in its stock.

The company’s stock gained 50 percent prior to the market opening on Monday, after its late-stage cancer drug trial met its goals. The biotech firm now plans to file for approval for the drug, rucaparib, from the U.S. Food and Drug Administration within the next four months. Rucaparib is geared toward women with platinum-sensitive ovarian cancer. Stock was at $90.17 per share mid-day Monday. 

The news comes at the same time that Clovis announced that it agreed to settle a class action lawsuit, Medina vs. Clovis Oncology Inc. That lawsuit accused Clovis and certain executives of violating securities laws by allegedly making misleading and false statements about the progress and market potential of one of its drugs, rociletinib. That drug was not approved by the FDA advisory committee last year.

Per the settlement, Clovis will pay $25 million in cash and $117 million in stock. The cash component is expected to be covered by the company’s insurance carriers.