The annual ASCO meeting is where important news breaks and companies get recognized for their research. The upcoming ASCO conference has supported the biotech sector for the last week but it is not over. What a great opportunity to be long a company that specializes in cancer drugs.
NEW BULLISH Plays
CLVS - Clovis Oncology - Company Profile
Clovis Oncology is a biopharmaceutical company that focuses on acquiring, developing and commercializing anti cancer agents worldwide. It is developing three product candidates, which include Rociletinib, an oral epidermal growth factor receptor and mutant-selective covalent inhibitor that is under review with the U.S. and E.U. regulatory authorities for the treatment of non-small cell lung cancer; Rucaparib, an oral inhibitor of poly polymerase, which is in advanced clinical development for the treatment of ovarian cancer; and Lucitanib, an oral inhibitor of the tyrosine kinase that is in Phase II development for the treatment of breast cancers.
Clovis announced it would make three presentations at ASCO and one discusses the potential for using Rucaparib for treatment of a different cancer other than the drugs original intent. That presentation is on pancreatic cancer and the other two are on ovarian cancer.
These are promising drugs and any positive data that Clovis releases could give the stock a significant boost.
In their recent earnings they reported a loss of $1.98 compared to estimates for -$2.15. Because it is an experimental drug company, the earnings are not that material. Shares did decline about $1.50 after the report but have risen $4.50 in the last two weeks.
Earnings August 4th.
Resistance is $20.30 and shares closed at $16.70 on Friday. I would gladly take a $2 gain out of the middle over the next week and they tighten the stop loss as the multi-day conference begins next Friday.
Buy CLVS shares, currently $16.70, initial stop loss $15.35
No options recommendation because of wide spreads.
NEW BEARISH Plays
No New Bearish Plays