ImClone’s phase III clinical trial on the efficacy of Erbitux and advanced lung cancer is another victory!
Posted by Jack Haddad on February 22, 2008 at 1:40 pm
I direct your attention to ImClone, the sole producer of the blockbuster drug “Erbitux.”
Phase III clinical trials on subjects with advanced lung cancer has yielded efficaceous results. Therefore, the FDA is highly expected to approve the trial in its meeting this month. IN reviewing the trial’s data, I’m leaning toward the likelihood that the study will be viewed as positive and the drug will be able to capture about 40 percent of the patients who are ineligible for Avastin treatment. That could mean sales of $1.5 billion in the U.S. and a similar level in Europe.
Currently, the stock at 42 is very attractive with 40 being an important pivot/support point. For those interested, I would buy the shares and hedge by writing (”sell to open”) the March strike 40 calls at 3.10 to 3.20 per contract. Those “deep in the money” calls provide a hedge as well as an intrinsic call value of 1.05/share. This type of a hedge is very tempting considering the good support at 40. Should the shares go below 40, I would roll the March into the April calls.
Bear in mind that Erbitux is only produced by ImClone. The drug’s patent is years away from expiration. So, competition from a generic make is not a concern momentarily. Moreover, ImClone’s Erbitux is a major threat to DNA’s Avastin!
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If only Martha had just held on to her Imclone stock - would have saved her some time (sans ankle bracelet)
So, is Erbitux also an angiogenesis inhibitor (i.e., works by inhibiting vessel growth in tumors)? What makes a patient ineligible for using Avastin? Clotting or bleeding issues? Thanks Jack.
Patients who are on mega doses ( access of 1200 mg IV)of Zorfan, a powerful anti-emetic, cannot be placed on Avastin. Simply stated, when a person is throwing up as a result of powerful neoplastic agents that fight cancer, they discharge lots of fluid-containing electrolytes (sodium and potassium. That said, Avastin, is konwn to further deplete electrolytes in the body.
I would love to encourage both DNA and IMCL to engage in a cross-section, randomized, double-blind, and placebo-controlled clinical trial to compare which drug (either Avastin or Erbitux) results in higher rates of electrolyte discharge. There has not been a trial concerning this matter yet!
Yes, one of the Erbitux’s mechanism of action is to inhibit the flow of blood to cancerous cells by constricting their vessels. This is an effective mechanism of action because tumerous cells have in access of 3 nucleuses (cell’s factory)and therefore demand lots of blood supply to meets the required nutrients of the cell. By cutting off the blood circulation of a cell that requires so much nutrients, starvation occurs and the cells dies!