ImClone Shares Tumble on Rumors of Cancer Drug Shortfall

Shares of ImClone Systems fell 6% on Tuesday on rumors results from a clinical trial of its only drug -- colon cancer treatment Erbitux -- would fall short of expectations. Analysts expect data on the drug at the American Society of Clinical Oncology [ASCO] meeting next month. HSBC analyst Gene Mack said he had heard the speculation, but was unable to substantiate it. StreetAccount said Tuesday in a client alert: "[ImClone] shares are being pressured by speculation regarding ASCO abstracts from the Crystal trial, which revealed less than expected survival benefit in the Erbitux arm of the trial." The company said it was however unable to confirm the source nor the validity of the information. In January, initial trial data showed that Erbitux combined with chemotherapy increased survival over chemotherapy alone. Shares, up almost 55% YTD, fell $2.64 (6%) to close at $41.33.

Sources: Reuters
Commentary: ImClone's Erbitux Fails Pancreatic Cancer Study • Icahn Hopes to 'Get Lucky Again' with ImClone • Will Biotechs Pay the Price for Playing in the Big Leagues?
Stocks/ETFs to watch: ImClone Systems Inc. (IMCL)

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