Bristol-Myers, ImClone Expand Erbitux R&D

Bristol-Myers Squibb(BMY Quote) and ImClone Systems(IMCL Quote) said after Friday's market close that they will expand research and clinical development of Ertibux.

The amended agreement expands the investment in the drug by as much as several hundred million dollars. The companies said the plan calls for numerous added phase II and III trials in a wide variety of therapeutic settings. The new data will explore the use of the drug in tumor types including brain, breast, bladder, gastric, lung, pancreas and prostate, supplementing the clinical data that exist for the drug in colorectal and head and neck cancers.

Bristol-Myers Squibb will be responsible for development costs to a currently undisclosed threshold -- any costs beyond that point will be split.

"This new commitment to Erbitux represents one of the largest and broadest cancer-focused development programs for any antibody. The agreement aligns the development and commercialization of Erbitux at ImClone Systems and Bristol-Myers Squibb to benefit both companies' shareholders, and most importantly, cancer patients," said ImClone Chairman Alexander Denner.

Bristol-Myers Squibb closed down 4.1% at $28.64 but gained 1.4% to $29.04 in after-hours trading. ImClone closed down 3.3%, at $33.56, but climbed 1.4% to $34.04 after hours.