ImClone Soars On Revised Bristol-Myers Erbitux Deal

Updated from March 5

Shares of Imclone Systems(IMCL Quote) soared 22% Wednesday after the company and Bristol-Myers Squibb(BMY Quote) renegotiated terms of their sometimes acrimonious partnership for the experimental cancer drug, Erbitux.

The new deal has the whiff of compromise, and eliminates speculation that Bristol-Myers will walk away from ImClone as it tries to get the delayed Erbitux application accepted by the Food and Drug Administration.

Imclone was up $5.18, or almost 22%, to $29 per share in recent trading. Bristol-Myers was up $1.59, or 3%, to $50.02. The rise in Imclone shares was aided by positive analyst comments from Lehman Brothers and Thomas Weisel Partners, and an upgrade to outperform from Stephens. ...