ImClone Soars on Erbitux Study Results

Updated from 7:34 a.m. EDT

The cancer drug Erbitux has prolonged the survival of lung-cancer patients, according to results of a large phase III study announced today by German drug maker Merck KGaA, which sells the drug in Europe.

The news sent shares of ImClone Systems(IMCL Quote) surging Tuesday morning. ImClone, of course, developed Erbitux and markets the drug in the U.S. with partner Bristol-Myers Squibb(BMY Quote).

Erbitux is used primarily to treat colon cancer and head-and-neck cancer. Until today, the large and lucrative lung cancer treatment market has been out of the drug's reach. If Erbitux becomes a player in the lung cancer market, it could pinch sales of Genentech's(DNA Quote) Avastin, which is currently the go-to targeted cancer drug for first-line lung cancer treatment. ...