Clovis Oncology Inc (NASDAQ: CLVS) is having an overwhelmingly strong start to the trading session this morning, but if you’re looking for press releases or SEC filings that led to the move, you’re not going to see any. The truth is that the company hasn’t released any news. Nonetheless, there is a very good reason for the gains. Today, we’ll talk about:
- Why CLVS stock is climbing;
- what we’re seeing in the market; and
- what we’ll be watching for ahead.
Why CLVS Is Climbing
As mentioned above, Clovis Oncology is having an incredibly strong start to the trading session this morning, but the company hasn’t released any news. So, what’s the deal? Well, it all has to do with an acquisition of a competitor.
Early this mroning, GlaxoSmithKline (GSK) announced that it would be acquiring TESARO (TSRO) in a transaction with a price of $5.1 billion. The massive acquisition is based around TESARO’s Zejula product. This product is an oral poly ADP ribose polymerase (PARP) inhibitor that is currently approved for the treatment of ovarian cancer. Ultimately, the acquisition reminded investors that there is some serious value in PARP inhbitors. This is where CLVS comes in.
CLVS is the owner of an asset known as Rucaparib. This is a small molecule PARP inhibitor that is being developed for multiple tumor types. In fact, the company is going after ovarian, prostate, and bladder cancers with the drug. Ultimately, the TSRO acquisition excited CLVS investors because it showed just how valuable Rucaparib may be.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Clovis Oncology, while the company hasn’t released any news of its own, the news of the GSK takeover of TSRO is leading to incredible excitement as it highlights the value of PARP inhibitors. So, it’s not surprising to see that investors are excited and the stock is making a run for the top in the pre-market hours. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:45), CLVS is trading at $22.00 per share after a gain of $4.79 per share or 27.83% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on CLVS. In particular, we’re interested in following the continued development of Rucaparib as well as the rest of the company’s impressive pipeline. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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