Here’s Why Many Smart Money Investors Are Bullish on Clovis Oncology

In terms of valuation, Kyle Bass’ Hayman Capital Management, a Clovis Oncology bull, has a base case price target of $45 and a bull case price target of $90 (See his thesis here). For his base case, Bass thinks the FDA will approve Clovis Oncology’s rucaparib for the treatment of 3L+BRCA+ ovarian cancer, which Bass estimates is alone worth $25-$30 per share. Bass also notes Clovis Oncology has substantial cash ($378.5 million in cash and cash equivalents at the end of Q2 2016), and he estimates that Clovis Oncology’ rociletinib is still worth $10-15 per share despite the bad news.

In short, Bass thinks the market isn’t giving Clovis Oncology credit for its potential and that Clovis Oncology will ultimately prove the bears wrong.

In terms of smart money activity, 21 funds tracked by us owned shares of Clovis Oncology Inc (NASDAQ:CLVS) at the end of June, down by three funds from the previous quarter.

Disclosure: none