Biotech Buzz: Fresh News From JPMorgan Confab
ImClone Systems ( IMCL): 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) 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.