Is the Recent Weakness in Abgenix Telling Us Something about Panitubimab? (ABGX, IMCL, AMGN)

Abgenix (ticker: ABGX) has fallen over 20% month to date. Given the imminent release of panitubimab Phase 3 data in third-line colorectal cancer, does the sell-off indicate impending bad news?

I think not. If Abgenix has fallen over concerns of the panitubimab clinical trial, then I would expect Imclone (ticker: IMCL) to respond positively since, like panitubimab, Erbitux is an EGFR inhibitor. But, Imclone is still range bound and is essentially where it was back in April. No, I think what we are seeing is good ol' fashion profit-taking in a skittish market by risk-averse investors ahead of an important event. (FYI: Expectations are that the data will be announced before Amgen's (ticker: AMGN) third quarter earnings release on October 19th.)

ABGX chart.

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