Clovis Oncology Inc (CLVS): Double Data, Double Stock Price

The driving force
As you can guess from the fact that it’s still using a code name, CO-1686 is a little further back in the clinic, but the data for the drug are having a larger impact on Clovis Oncology Inc (NASDAQ:CLVS)’s stock price today than rucaparib’s data.

In a dose-escalating clinical trial of lung cancer patients who no longer respond to Astellas and Roche‘s Tarceva, data for the top dose tested looked pretty good. There were only six patients in that group, but three had partial responses and one had stable disease. One of the six couldn’t be evaluated and the sixth one didn’t have the mutation in a protein called epidermal growth factor receptor that CO-1686 targets. Call it four out of four with a giant asterisk by the results.

The best part? Clovis Oncology Inc (NASDAQ:CLVS) hasn’t reached the maximum tolerated dose, suggesting that as it tests higher doses, the drug might work even better.

The biggest risk with Clovis Oncology Inc (NASDAQ:CLVS) — beyond that a lot can happen between phase 1 and FDA approvals — is that other new drugs come in and take Tarceva’s patients. About 50% of patients that take Tarceva develop the mutation that CO-1686 targets. If patients aren’t taking Tarceva because something better comes along, there won’t be as many patients for Clovis Oncology Inc (NASDAQ:CLVS) to treat.

The article Double Data, Double Stock Price originally appeared on Fool.com.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends BioMarin Pharmaceutical Inc. (NASDAQ:BMRN).

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