Biotech Clovis Oncology raising $275 million for new cancer drugs
Thursday, July 09, 2015
Clovis Oncology is selling $275 million in new stock to raise money for research and the possible commercialization of two cancer drugs, as well as the possible acquisition of other promising medicines to develop.
The Boulder-based drug research company’s lead medicines are rociletinib, an oral drug in for the treatment of non-small cell lung cancer, and rucaparib, an oral drug for the treatment of ovarian cancer.
Both drugs are in phase II and phase III clinical trials of testing the drugs in people.
Clovis (Nasdaq: CLVS) is raising money ahead of launches of the drugs if they receive marketing approval for domestic and European Union sales from the U.S. Food and Drug Administration and the European Medicines Agency, the company said.
Both drugs received FDA “breakthrough therapy” designations due to their potential for becoming an effective medicine for conditions with limited treatment options. The designation is meant to speed the FDA review process and get drugs that prove effective to market more quickly.
Clovis expects to complete a new drug application with the FDA for rociletinib by the end of July and plans to start a marketing application for the drug with the EMA shortly afterward, CEO Pat Mahaffy said.
Other uses of proceeds from the stock sale announced Tuesday include acquisition or licensing of additional drug candidates and for businesses and working capital.
Clovis Oncology plans to grant the stock-sale underwriters a 30-day option to purchase additional stock equal to 15 percent of the shares sold in the offering.
bizjournals.com
