Clovis Plans to Sell Cancer Drug to Novartis in Bankruptcy Deal

Clovis Oncology Inc. filed for bankruptcy and plans to sell its experimental cancer drug at an auction with Novartis Innovative Therapies making a binding, opening bid worth as much as $681 million.

Novartis has agreed to pay $50 million initially and another $630.75 million in payments if the cancer drug, FAP-2286, wins regulatory approval and later hits certain sale goals, Clovis said in a statement. The agreement will be considered the opening bid of a court-supervised auction, should a judge approve the deal and competing offers come in.

For Clovis, which once had a market value of over ...