Clovis upgraded to Outperform after favorable EU patent ruling at Leerink

Leerink analyst Andrew Berens upgraded Clovis Oncology (CLVS) to Outperform from Market Perform after the European Patent Office upheld claims of a European patent on Rubraca. He said the finding of inventiveness in Europe strengthens his confidence in the U.S. patent estate and removes a near-term intellectual property overhang on Clovis shares. Berens now sees a 50% chance of branded exclusivity through 2023 in the U.S. in the “worst case” and through 2031 in the “best case.” He also said Glaxo’s (GSK) acquisition of competitor Tesaro (TSRO) brings a “return of optionality” to Clovis shares. Berens raised his price target on Clovis to $40 from $22.

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