AstraZeneca plc (ADR) (NYSE: AZN) on Tuesday presented positive Lynparza results in ovarian cancer maintenance. This raises competitive risks for Clovis Oncology Inc’s (NASDAQ: CLVS) Rubraca, which is currently in the phase III ARIEL3 maintenance study, Chardan Capital Markets’ Madhu Kumar said in a report.
Madhu reiterated a Sell rating for Clovis, with a price target of $36.
Increased Competition
Clovis is expected to present top-line results from Rubraca’s phase III ARIEL3 maintenance study in mid-2017.
“While we understand that success for a second PARPi in the setting of ovarian cancer maintenance therapy arguably further de-risks PARPi as a class in the indication, this de-risking needs to be balanced by the competitive pressures generated by multiple effective PARPis in the ovarian cancer space,” Madhu wrote.
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Moreover, positive results for competitors in the second-line maintenance setting exerts pressure on Rubraca's approved indication of third line or later therapy. The analyst added that the positive SOLO-2 result presented by AstraZeneca “raises the possible risk” of ARIEL3 failing in an absolute or relative sense.
Although Rubraca is being tested for another major indication, that of metastatic castrate-resistant prostate cancer, there are several PARPi competitors in development in combination with AR [androgen receptor] inhibitors, Madhu noted.
Latest Ratings for CLVS
| Feb 2017 | Chardan Capital | Downgrades | Neutral | Sell |
| Jan 2017 | Bank of America | Initiates Coverage On | Buy | |
| Jan 2017 | PiperJaffray | Upgrades | Neutral | Overweight |
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