Clovis launches $85M stock offering on heels of FDA approval

Editor’s note: Clovis’ flagship drug is used to treat prostate cancer. That information was incorrect in the original posting of this story.

BOULDER — Days after it landed approval to use its flagship drug to treat prostate cancer, Clovis Oncology Inc. (Nasdaq: CLVS) said it intends to sell $85 million in new stock.

The Boulder cancer treatment company did not set a price, number or shares or a date for the sale in a filing to the U.S. Securities and Exchange Commission Monday. However, the underwriters J.P Morgan and Bank of America are entitled to buy $12.75 million worth of stock.

If sold around the company’s closing share price of $8.96 on Monday, Clovis could add about 9.5 million in shares to its existing 76.9 million shares outstanding.

The U.S. Food and Drug Administration approved Rubraca for use in certain types of prostate cancer Friday. The drug, which generated $143 million in revenue in 2019, was previously approved only for ovarian cancer.

Clovis’ stock dropped 10% in after-hours trading after declining 7.53% during normal hours against the greater 3.8% increase n the Dow Industrial Average.