Morning Commentary: Clovis collapses on drug-review setback; Vipshop extends losses; Illumina up

By Rebecca Melvin

New York, Nov. 16 – Clovis Oncology Inc.’s convertibles plunged by about 100 points early Monday after the Boulder, Colo.-based biotechnology company announced that regulators have asked for more clinical data for its rociletinib lung cancer treatment.

Clovis said it will provide additional information to the Food and Drug Administration by the close of business on Monday, but it still expects potential approval will be delayed from the March 30, 2016 date that had been expected.

Clovis’ 2.5% convertibles due 2021 fell to about 80 from 180 in active trade, according to Trace data.

Clovis shares fell $67.85, or 68%, to $31.59.

Elsewhere, Vipshop Holdings Ltd.’s convertibles extended losses after a 14% tumble on Friday, as shares of the China-based online discount retailer also dropped further. On Friday the company lowered its third-quarter revenue estimate.

Vipshop’s 1.5% convertibles fell below par, changing hands at 98.8, according to Trace data, which was down from 101 on Friday and down from 117 on Thursday.

Vipshop shares were down $1.50, or 11%, at $12.10.

Overall, the convertibles market was mixed and volume was average, a New York-based trader said.

There didn’t seem to be any fallout in convertibles from the Paris terror attacks that left scores dead after a coordinated attack by suicide bombers and gunmen in the French capital Friday night.

There was “not really any reaction,” the trader said regarding a response to the terrorism.

One name that was a bit better in the early going was Illumina Inc. Its trio of convertible bonds were seen higher on a swap basis by about 0.25 point, the trader said.

The common stock of the San Diego-based genetic research equipment maker was flat to higher at about $166.00.

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