NEW YORK (TheStreet) -- Clovis Oncology (CLVS) continued to plunge to a one-year low of $38.48 on Tuesday with another day of double-digit declines following disappointing data from ASCO 2014 with regard to the company's investigational non-small cell lung cancer drug, CO-1686.
The drug, designed to target target T790M-positive mutation, initially showed an estimated median progression-free survival of greater than 12 months. But CEO Pat Mahaffay told analysts over the weekend that a handful of CO-1686 patients needed to be placed on insulin after instances of hyperglycemia. This indicated some glaring safety concerns about CO-1686, and investors seem to not believe that Mahaffay satisfactorily addressed those concerns in an interview with CNBC on Monday.
Furthermore, Citigroup downgraded Clovis to "neutral" from "buy" and slashed its price target to $53 from $109 on Tuesday. The firm notes the company could face increased competition from AstraZeneca's (AZN) drug AZN9291 because of the abatement of previous concerns about the drug's cardiotoxicity.