Clovis Oncology warns of likely bankruptcy filing following years of scandal and financial losses

Clovis Oncology, a maker of cancer drugs, warned Wednesday that it will likely file for bankruptcy protection due to dwindling sales of its sole product, mounting financial losses, and a crushing debt load.

Based on its current operating plan, Clovis does not have the resources to remain financially solvent beyond January 2023, the company said in its quarterly filing with the Securities and Exchange Commission. With additional funding unlikely, “a potential bankruptcy filing in the very near term looks increasingly probable as a way to preserve the value of our business and assets for the benefit of our stakeholders.”

The money-losing company ended the quarter with $58 million in cash but $748 million in debt.

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