Clovis Enters Bankruptcy With Deal to Sell Cancer-Drug Candidate to Novartis

Clovis Oncology Inc., maker of the ovarian and prostate cancer drug Rubraca, filed for bankruptcy over the weekend with a proposed deal in hand to sell its rights to a cancer therapy under development to Swiss pharmaceutical giant Novartis AG .

Novartis Innovative Therapies AG has agreed to make an upfront payment of $50 million for Clovis’s clinical candidate, FAP-2286, and could pay an additional $333.75 million if certain development milestones are reached, plus $297 million for subsequent sales goals.