Reuters
UPDATE - Cancer drug data boosts only a few biotechs
Monday June 7, 11:34 am ET
By Toni Clarke and Jed Seltzer
(Adds details on stocks, recasts first paragraph)
NEW YORK, June 7 (Reuters) - Data from experimental drugs at the year's biggest cancer conference boosted only a handful of biotechnology stocks on Monday as results showed promise but no substantial breakthroughs.
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Among the few winners was ImClone Systems Inc (NasdaqNM:IMCL - News), whose Erbitux drug controlled head and neck cancer better than radiation and helped some patients live longer, researchers said on Saturday at the American Society of Clinical Oncology annual conference.
Shares of ImClone, the company at the center of the Martha Stewart insider trading scandal, rose 9.3 percent to $79.15 in morning trading on the Nasdaq as investors bet that the drug might be effective in other forms of cancer. It is already approved for colorectal cancer.
But aside from the Erbitux news, the stock market was little impressed with the data presented at the New Orleans gathering of oncologists and researchers.
The American Stock Exchange Biotechnology Index (AMEX:^BTK - News) slipped 1 percent.
Last year, Genentech Inc. (NYSE:DNA - News) set off a rally in the biotech industry with robust data, released before the annual conference, showing its Avastin drug significantly improved survival among colorectal cancer patients.
The results validated the theory that drugs targeting cancer cells without causing the mass destruction of chemotherapy could extend life.
This year, many drugs using similar technology showed some promise in early- or mid-stage trials. But biotechnology stocks have had a strong run over the past year.
"Last year, it was a different time for the biotech sector," said Fariba Ghodsian of Castle Creek LifeScience Partners. "This year, it's a very different landscape."
On Monday, shares of Genentech and OSI Pharmaceuticals Inc. (NasdaqNM:OSIP - News) slipped after they reported their Tarceva drug, being co-developed with Roche (ROG.VX), increased survival by about 2 months compared with a placebo among patients with advanced lung cancer.
The company had previously reported the drug significantly increased survival rates but until Saturday, they did not disclose the extent of the benefit.
OSI was down $3.23, or 4.2 percent, at $75.30 in morning Nasdaq trading, while Genentech fell $2.64, or 4.4 percent, to $56.98.
"Avastin started the whole excitement of biological drugs," said Ghodsian. "Tarceva is part of that group, but it's not the first."
Shares of Ariad Pharmaceuticals Inc. (NasdaqNM:ARIA - News) fell 13.75 percent to $9.33 after early-stage results of its treatment AP23573 disappointed investors.
One bright spot was Telik Inc., (NasdaqNM:TELK - News) whose stock rose 7 percent to $25.20 after researchers said that patients with lung cancer and ovarian cancer responded well to the company's experimental drug, Telcyta, after having failed other therapies. |
