Clovis shares dive as FDA asks for more data on lung cancer drug
Clovis Oncology Inc said the U.S. Food and Drug Administration had asked for additional data on the effectiveness of its lung cancer drug, which could delay an approval for the treatment. Clovis shares plunged as much as 73.8 percent to a two-and-a-half-year low of $26.05, shaving off about $2.8 billion from the company's market value.The FDA's decision on the drug, rociletinib, was earlier expected by March 30.Analysts had expected an earlier approval for the drug after a similar treatment from AstraZeneca Plc was approved on Friday, three months ahead of the expected date.
AstraZeneca's drug, Tagrisso, is expected to generate $1.1 billion in sales in 2020, according to Thomson Reuters Cortellis.Both drugs target a genetic mutation that prevents current therapies from working on patients.
Clovis is also developing other cancer drugs, including rucaparib for ovarian cancer and lucitanib for breast cancer.
Rucaparib is in late-stage studies, while lucitanib is being tested in mid-stage studies. (Reporting by Ankur Banerjee in Bengaluru; Editing by Savio D'Souza and Kirti Pandey)