ASTR - Why Is Clovis Oncology (CLVS) Stock Down 72% Today?
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Clovis Oncology (NASDAQ:CLVS) stock is crashing on Wednesday as investors react to news of the company running out of cash!
According to a recent filing from Clovis Oncology, there’s a strong chance it files for bankruptcy in the near future. This comes as the company is having trouble selling its cancer drug Rubraca.
Clovis Oncology notes that with its cash on hand, as well as expected revenue from Rubraca, it won’t be able to continue operations beyond January 2023. The company says it will continue to evaluate its strategic options even as bankruptcy looms.
Clovis Oncology provided the following details in a filing with the U.S. Securities and Exchange Commission (SEC).
‘We have incurred significant net losses since inception and have relied, almost entirely, on debt and equity financings to fund our operations. We expect operating losses and negative cash flows 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.”
CLVS Investors Are Jumping Ship
Heavy trading follows today’s news as holders of CLVS stock sell their shares. As a result, some 35 million shares of the company’s stock have changed hands as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 2.9 million shares.
CLVS stock is down 72% as of Wednesday afternoon and is down 91.3% since the start of the year.
Investors looking for more of the latest stock market news will want to stick around!
We’ve got all of the latest stock market news for Wednesday, which includes loads of layoffs! A few worth checking out include those from Astra Space (NASDAQ:ASTR), Intel (NASDAQ:INTC), and Meta (NASDAQ:META). You can learn all about these topics at the following links!
More Wednesday Stock Market News
- Astra Layoffs 2022: ASTR Stock Falls as Astra Space Cuts 16% of Staff
- Intel Layoffs 2022: What to Know About INTC Job Cuts, Hiring Freeze
- Mark Zuckerberg Confirms: Meta Layoffs Will Cut 11,000 Employees
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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