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Which Credit Card Rewards Does the IRS Care About?Biotechnology industry expert John McCamant last recommended ImClone Systems (NASDAQ: IMCL) in the mid-1990s at $5 a share, and later sold at $42. Now, he has issued a trading alert, once again recommending the shares.
Two events, he says, are the basis of his new buy. The editor of The Medical Technology Stock Letter says, "The first event was Amgen's failed clinical trial of their competing product, Vectibix, when used in combination with Avastin and FOLFOX for the treatment of front-line metastatic colorectal cancer."
This, he notes, has "significantly strengthened" the competitive position of Imclone's Erbitux versus Vectibix. The second event, he adds, was the recent failure of Erbitux in the pancreatic cancer setting, which caused the stock to sell off.
McCamant explains, "This is a low impact event for Erbitux, and, in fact, they have other trials running in pancreatic that may still pan out."
The news, he states, while is disappointing, is "hardly a significant setback" for the company. To the contrary, he says, "We believe that with multiple potential positive catalysts on the nearer-term horizon, the pullback in the stock that this news led to has created a golden trading opportunity."
The advisor notes that results from two Phase 3 trials in metastatic colorectal cancer were just presented at the American Association of Cancer Research (AACR).
He observes, "A survival benefit of 32% was witnessed, with Erbitux patients living 6.1 months, versus 4.6 months for patients treated with best supportive care. These results are highly statistically significant."
He also notes that further out on the horizon, he expects additional data from the Phase 3 trial of Erbitux in the lung cancer setting. This is anticipated to be a second half event.
In the meantime, he sees recent price weakness as a chance to initiate trading position. He suggests buying on dips below $41 with a three-month trading target of $49.
For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.
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