Biotech Notebook: ImClone, Genentech, Amylin

SAN FRANCISCO -- I've been attending the JPMorgan Healthcare Conference here since 2001. This year, the halls and meeting rooms seem more packed than ever. That may not mean anything, but then again, it may bode well for the biotech sector this year.

Of course, biotech hasn't suffered like the broader markets in early 2008. Through the first five trading sessions of the year, the two major biotech indices were flat, while there were steep drops in the S&P 500, Dow and Nasdaq.

Biotech Buzz: Fresh News From JPMorgan Confab

That may change when this conference wraps up on Thursday, and historically, biotech stocks do sell off after this confab. We'll see if the excitement here has legs.

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ImClone Systems(IMCL Quote - Cramer on IMCL - Stock Picks): Last October, I wrote a Columnist Conversation post that called ImClone an intriguing and undervalued biotech asset amid rampant (at that time) M&A speculation in the sector.

Since then, the stock has sunk to $38 from $45 -- either I'm stupid, or ImClone is even more undervalued today.

After listening to the company's presentation on Tuesday, I'm inclined to believe the latter (although the former might also be true -- let's reserve final judgment for a later day).

The way I see it, the company's position with Erbitux for colon cancer is getting better, and the opportunity in lung cancer has tremendous upside. Sure, Erbitux may not turn out to be as effective as Genentech's(DNA Quote - Cramer on DNA - Stock Picks) Avastin, but it really doesn't have to be; a large number of lung cancer patients cannot take Avastin. Yet these patients will likely benefit from Erbitux therapy.

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