Clovis (CLVS) Q3 Earnings & Sales Lag, Rubraca Disappoints

 | Oct 30, 2018 10:52PM ET

Clovis Oncology, Inc. (NASDAQ:CLVS) incurred an adjusted loss of $1.71 per share in the third quarter of 2018, wider than the Zacks Consensus Estimate of a loss of $1.60 and the year-ago loss of $1.24 per share.

Net revenues, entirely from Clovis’ only marketed drug, Rubraca, were approximately $22.8 million in the quarter, down 4.2% sequentially, due to challenges in adoption in earlier-line setting. Revenues missed the Zacks Consensus Estimate of $30.12 million. The company had recorded total revenues of $16.8 million entirely from Rubraca sales in the year-ago quarter.

Clovis stated that Rubraca is failing to capture significant share in the second-line maintenance ovarian cancer market as it has to compete with PARP inhibitors as well as other approved therapies. This is hurting sales of Rubraca. The company expects Rubraca sales to be similar or slightly higher than $22.8 million in the fourth quarter. The Zacks Consensus Estimate for the fourth quarter is pegged at $40.24 million.

Shares of the company declined almost 19.7% in pre-market trading, on lower-than-expected sales of Rubraca and the disappointing guidance. Moreover, Clovis has underperformed the industry in the past six months. The stock has lost 63.2% compared with the industry’s decline of 8.7%.