ImClone shares popped 5 percent today after the beleaguered drugmaker announced that its only product, Erbitux, helped patients with recurring head and neck cancers live longer than if treated with only chemotherapy.

The 400-patient study examined the impact of Erbitux administered in combination with platinum-based chemotherapy for patients with squamous cell carcinoma of the head and neck, or SCCHN. The data will be presented at the American Society of Clinical Oncology Annual Meeting in Chicago in June, but Wall Street is very excited.

“In our view, this is a bigger deal that some may think,” writes Michael King, an analyst at Rodman & Renshaw, in an investor note today, who expects the results to add $60 million in revenue this year.

He points out that Erbitux is currently used in about 30 percent of first-line patients, with 21 percent on just Erbitux and the rest on platinum chemo. In his view, the “key” opportunity lies with the 60-plus percent of first-line patients given platinum chemo without Erbitux.

The chart is courtesy of Rodman & Renshaw.

Further reading…
Bloomberg News.

[tags]Amgen, Bristol-Myers Squibb, ImClone Systems, Merck KGaA[/tags]