Clovis Oncology (CLVS) is making major headlines today after falling 72% or $71.80. But what we’re seeing is a major overreaction to news the FDA is requested further information for efficacy analysis in drugs for the treatment of EGFR T790M-positive lung cancer.
While the company will provide the necessary information, it’s likely to delay potential approval beyond the expected March 2016 PDUFA date. We believe approval will come shortly after that time and are using today’s sell off as an opportunity to back up the truck on a well-respected company.
This news does not warrant such a sell off.
There are two ways to trade this opportunity long-term. One, buy just CLVS stock up to $30 a share… And, or two buy to open the January 2015 35 call at market.
Ian L. Cooper
Forgotten Profits