After the Bell- ImClone, General Dynamics rise
Wednesday March 5, 6:33 pm ET
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NEW YORK, March 5 (Reuters) - Shares of ImClone Systems Inc. (NasdaqNM:IMCL - News) jumped more than 7 percent in after-hours trading on Wednesday after the biotech company said it received a $60 million cash payment from Bristol-Myers Squibb Co. (NYSE:BMY - News)
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ImClone, whose shares jumped to $16.36 on Instinet from a Nasdaq close of $15.27, said the payment from Bristol-Myers was under the companies' amended March 2002 agreement to develop the experimental cancer drug Erbitux.
The agreement was revised by Bristol-Myers after U.S. regulators in December 2001 unexpectedly refused to accept ImClone's application to market Erbitux as a treatment for colon cancer, citing inadequate clinical trial data.
The new terms included a lower, but quicker, upfront payment from Bristol-Myers and a cap on ImClone's share of future profits.
In other after-hours trade, General Dynamics Corp. (NYSE:GD - News) rose to $56.50 on Instinet from a close of $56.39 on the New York Stock Exchange (News - Websites). The Falls Church, Virginia-based builder of tanks, aircraft carriers and submarines said it would boost its quarterly dividend to 32 cents per share from 30 cents, an increase of 6.6 percent.
Provident Financial Group Inc. (NasdaqNM:PFGI - News) slid to $21.76 in after hours trade, down from a close of $22.46. The shares dropped after Standard & Poor's ratings service said it lowered its rating on the Cincinnati, Ohio-based company.
S&P cited uncertainty about Provident's ability to generate earnings "of reasonably consistent quality" after the company said on Wednesday it restated earnings for the years 1997 through 2002 because of accounting errors.
The regional bank also cut its 2003 earnings target, citing impact from the accounting problems.
Technology shares were little changed. The Nasdaq 100 after-hours indicator inched down 0.06 percent. Stocks rose on Wednesday for the first day in three as investors nibbled at battered shares and sifted through a mixed bag of earnings news from big-name retailers, but heightened global tensions kept gains in check. |
