CLVS - Clovis Oncology: Cash Position Is Tight We Question Management's Guidance

• Clovis Oncology is a higher-risk holding that has significant risk baked into the future outlook, and larger players have better product labels in our view.
• The company's cash position is tight, and we question the runaway guided by management, plus see evidence of poor liquidity through the recent convertible note issuance.
• Further evidence of the above is seen through recent severances, higher cash burn and paper thin sequential sales of Rubraca YTD.
• Key catalysts are not for another 1 to 2 years, on the back of readouts in studies planned for 2021 and 2022, thus price direction seems unpredictable for now.
• We hold a neutral stance on the company, until the case for immediate entry can be made more compelling from positive developments in the story.

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