Clo­vis soars as a new round of PhI­II Rubra­ca da­ta looks promis­ing — but ro­ci scan­dal bites again with $142M set­tle­ment

Shares of Clo­vis On­col­o­gy soared 50% Mon­day morn­ing, af­ter the biotech re­port­ed a sol­id slate of pro­gres­sion-free sur­vival da­ta for its PARP drug Rubra­ca (ru­ca­parib) that will help it line up right along­side ri­vals in the field, pos­si­bly elim­i­nat­ing an ad­van­tage held by Tesaro for ac­cess to a wider group of ovar­i­an can­cer pa­tients.

Soon af­ter the da­ta hit, though, Clo­vis re­vealed in an SEC fil­ing that it had ten­ta­tive­ly reached a deal to set­tle a class ac­tion law­suit brought by share­hold­ers af­ter Clo­vis’ dis­as­trous set­back on rocile­tinib, re­ject­ed by the FDA af­ter ques­tions arose about the dodgy da­ta that had been cir­cu­lat­ed about that can­cer ther­a­py ahead of the FDA’s de­ci­sion. The biotech is set­ting aside $142 mil­lion in cash and stock to set­tle al­le­ga­tions that it ac­tive­ly mis­led in­vestors on ro­ci. And Clo­vis al­so dis­closed that it is un­der in­ves­ti­ga­tion by the SEC as well as the Jus­tice De­part­ment over the ro­ci case.

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