An interesting story on how Erbitux could be used to help people with head and neck cancer. It seems Carl Ichan likes what he is seeing and has bought 18% of the company. This is the interesting part of the article:
"This could be a large opportunity for ImClone, but it's not a totally underserved (market)," Charles Duncan, an analyst with JMP Securities, said.
"People have thrown out all kinds of numbers...from $500 million to $1 billion," he said.
Whatever the opportunity, it is not fully reflected in today's stock price, he said, adding that the head and neck indication for the drug should put the stock around $42 within the next six months.
The Merrill Lynch guy doesn't think the drug will do that kind of business and has kept his "sell" rating on it. It may be an interesting stock to look into because it is at a 2 year low and there is lots of short interest in it. Many of them may have gotten shaken out today though because IMCL went bonkers today. Up 17% the last time I checked. There still may be upside if this Erbitux thing goes through decently.
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