Clovis announces $250M stock offering after success of clinical trials

BOULDER — In a week of major announcements for cancer-research firm Clovis Oncology Inc. (Nasdaq: CLVS), the company has released a prospectus offering $250 million in shares of its common stock.

The news comes on the heels of successful late-stage trials of its drug Rubraca, geared toward treating women with platinum-sensitive ovarian cancer. With the success of those trials, Clovis is moving forward with seeking approval for the drug with the U.S. Food and Drug Administration. Because of the positive news, Clovis’ stock surged 50 percent.

Now, Clovis is riding that wave, with the announcement that it was offering $250 million worth of stock. A spokesperson for Clovis declined to answer media questions, given a mandatory quiet period Clovis had with the U.S. Securities and Exchange Commission because of its filing.

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With the offering, nearly 49 million shares will be outstanding. There is also an option for the underwriters to purchase $37.5 million shares of common stock. If the underwriters to exercise that option, Clovis said it estimates its net proceeds to be about $270.3 million, or $234.9 million if the option isn’t exercised.

Clovis said those proceeds will be used for general corporate purposes, including the marketing and sales of Rubraca.

Clovis’ stock was $88.68 per share mid-day Tuesday, up from $87.38 at market open.