Banking & Finance  July 7, 2015

Clovis Oncology share price drops on news of $275M stock offering

BOULDER — Clovis Oncology Inc.’s share price dipped 3.5 percent in after-hours trading Tuesday following the announcement that the Boulder-based biopharmaceutical company (Nasdaq: CLVS) is planning a common stock offering of $275 million.

Company officials stated in a news release that all of the shares in the offering will be sold by the company.

The net proceeds will be used for general corporate purposes, including potential commercialization, and sales and marketing expenses associated with the launches of cancer drugs rociletinib and rucaparib.

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Clovis last week announced that the company has begun submission of a New Drug Application with the U.S. Food and Drug Administration for rociletinib for the treatment of non-small cell lung cancer. The company also plans to complete a Marketing Authorization Application to the European Medicines Agency this month.

In Tuesday’s announcement, Clovis officials did not specify the number of shares that will be offered, the offering price or when the stock sale would occur, and no regulatory filings regarding the sale had been made as of late Tuesday afternoon.

J.P. Morgan Securities will act as lead book-running manager and representative of the underwriters in the offering. Credit Suisse Securities is acting as joint book-runner, while Stifel and Mizuho Securities are serving as co-managers.

Clovis shares have more than doubled in value over the past year. They closed at $85.76 Tuesday, up 1.1 percent from Monday before sliding $3 after-hours following the stock offering announcement.

BOULDER — Clovis Oncology Inc.’s share price dipped 3.5 percent in after-hours trading Tuesday following the announcement that the Boulder-based biopharmaceutical company (Nasdaq: CLVS) is planning a common stock offering of $275 million.

Company officials stated in a news release that all of the shares in the offering will be sold by the company.

The net proceeds will be used for general corporate purposes, including potential commercialization, and sales and marketing expenses associated with the launches of cancer drugs rociletinib and rucaparib.

Clovis last week announced that the company has begun submission of a New Drug…

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