Why Clovis Oncology Stock Is Sinking Today

Shares of the commercial-stage biotech Clovis Oncology (NASDAQ: CLVS) dropped by as much as 18% in pre-market trading Tuesday morning. The stock tanked in response to a $250 million mixed shelf offering announced after the closing bell Monday.

Per the S-3 registration statement filed with the SEC, the company said that the net proceeds raised from the sale of any securities under this offering will be used for general corporate purposes, debt obligations, Rubraca's promotional expenses, ongoing clinical programs, milestone payments related to licensing agreements, and/or the acquisition of additional product candidates.

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