Clovis Oncology Inc stock
CLVS,
It fell 10% in premarket trading Monday after the biotech filed for Chapter 11 bankruptcy and said it would sell assets. The Company has a commitment of up to $75 million in proprietary financing to provide the liquidity needed to restructure through bankruptcy and pay its suppliers and customers. Prior to the filing, the Company entered into a stalking horse agreement with Novartis AG to acquire the rights to its clinical candidate FAP-2286 for an upfront payment of $50 million and up to $333.75 million upon reaching certain milestones Development and approval milestones. It will also be paid up to $297 million for hitting certain sales milestones. Clovis warned in November that it could be forced into bankruptcy as it runs out of money.
