Why Clovis Oncology (CLVS) Shares Are Plunging Today

Clovis Oncology Inc CLVS posted a Q3 EPS loss of $(0.39), up from $(0.56) a year ago, on sales of $30.66 million, down from $37.92 million.
The shares tanked after the company noted bankruptcy concerns in its Q3 SEC filing.
Based on current cash and cash equivalents of $58.30 million and estimates for Rubraca revenues, the company will not have sufficient liquidity to maintain operations beyond January 2023.
Last quarter, Clovis raised the need for additional capital to continue beyond February 2023.
Related: Clovis Oncology's Rubraca Hits Primary Goal In Prostate Cancer Settings.
Operating losses and negative cash flows are expected to continue for the foreseeable future, even with Rubraca generating revenues.
Rubraca revenues have not been consistent in prior quarters and have been trending downward during the past two years, initially due to the COVID-19 pandemic on patient visits and diagnoses, but more recently due to competition from other products on the market.
The company is in active discussions on a potential sub-licensing arrangement for Rubraca outside the U.S., but the regulatory uncertainty has made it more difficult to reach an agreement on financial terms.
Clovis is also in active discussions to sell license rights to FAP-2286.
Price Action: CLVS shares are down 75.60% at $0.24 on the last check Wednesday.

Clovis Oncology Shares Nose-Dive As Potential Bankruptcy Filing Looms