This post explains the Genetech leak. Thanks for the alert.
9723
From: marcopolosrq1
Date: Thu Apr 11, 2002 8:19pm
Snip/////////
Tech Stocks : Adam Feuerstein
Cancer-Drug Research Leaks Sink Genentech but Buoy ImClone
By Adam Feuerstein
Staff Reporter
04/11/2002 05:01 PM EDT
Updated from 2:04 p.m. EDT
Genentech (DNA:NYSE - news - commentary - research - analysis) shares
were hammered Thursday after research abstracts prepared for the
upcoming annual meeting of the American Society of Clinical Oncology
were leaked.
ImClone Systems (IMCL:Nasdaq - news - commentary - research -
analysis) shares were up strongly after positive indications for its
cancer drug, Erbitux, were noted in another leaked abstract.
The initial buzz: Some are reading safety issues into Genentech's
experimental cancer drug, Avastin, after seeing the abstracts,
according to sources. Some patients given Genentech's Avastin as part
of a phase II trial are apparently having problems with bleeding and
blood clots. Wall Street traders have proved quick to react
negatively to the preliminary leaked results, but it is not yet clear
how significant these safety issues are, according to a hedge fund
manager with access to the abstracts.
Genentech shares fell $5.37, or more than 12%, to $37.75 in Thursday
trading.
But the Avastin abstract, obtained by TheStreet.com, also contains
some positive information. Of the 28 cancer patients detailed in the
abstract, 2 had complete responses to Avastin treatment, while 12
others had partial responses. JP Morgan analyst Frank Berger held a
conference call this afternoon with an investigator in the Avastin
clinical trials. The doctor's opinion: The efficacy results were
impressive, especially given that these patients suffered from
advanced stages of their cancer. And the occurrences of blood clots
and bleeding are not uncommon in these types of patients, and may not
be caused by Avastin, she added.
On his call, Berger noted that much of the safety information
contained in the ASCO abstract was known previously, and that the
final verdict on the drug will not come until results are released
from two phase III studies. One of these studies will be ready later
this year, but not at ASCO. (Berger rates Genentech a strong buy and
his firm doesn't have a banking relationship with the company.)
Moving to ImClone, data regarding its cancer drug, Erbitux, looked
positive. The data are from a phase 2 observational trial in
refractory head and neck cancer patients who were given a combination
of Erbitux and cisplatin.
ImClone shares closed Thursday up 82 cents, or 3.5%, to $23.81. The
stock traded up as much as 7% earlier in the day.
ASCO's annual meeting is the most closely watched cancer meeting of
the year. Research abstracts for the meeting were supposed to be
released April 15, but ASCO faculty members were apparently granted
early access. These abstracts are now making their way quickly across
Wall Street trading floors.
A Genentech spokeswoman wouldn't comment, because ASCO rules prohibit
companies from discussing research abstracts before they are released
at the meeting. But she also was not aware that the ASCO abstracts
were released early. ASCO has not yet returned a phone call seeking
comment. ASCO said last month that it was changing its policy on
releasing abstracts in order to prevent the selective disclosure of
market-moving information to traders. |
