Anadys Drops Hep C Program

Anadys Pharmaceuticals Inc. said it was cutting its workforce by a third and discontinuing further development of ANA380, its drug to treat hepatitis B virus infection.

Anadys said it was halting all work on early discovery projects and will incur a charge of about $0.8 million related to the workforce reduction.

In a filing with U.S. regulators, the company said it was terminating its employment agreement with Chief Scientific Officer Devron Averett, effective Aug. 17. Averett will assume a consultancy role, it added.

Anadys expects the 33 percent workforce reduction to result in annual savings of between $4 million and $5 million.

The company said it would return all rights of the ANA380 compound to Korean pharmaceutical company LG Life Sciences Ltd.

Anadys and LG Life Sciences had entered into a joint development program in April 2004, under which Anadys had marketing rights to the compound in North America, Europe, Japan and some other countries.

Last week, the company said it was discontinuing development of ANA975, its drug to treat hepatitis C virus infection, on safety concerns. It was developing the drug with Swiss drug-maker Novartis.

Anadys said it will focus its resources on two drug candidates, ANA598 for hepatitis C and ANA773 for cancer. With a cash balance of about $69 million, it believes it can carry development of the two drugs forward.

The company posted a second-quarter loss of $7 million, or 24 cents a share, on revenue of $1.3 million. Analysts on average were expecting a loss of 29 cents a share, on revenue of $1.34 million, according to Reuters Estimates.

Computer Problems are Fixed!!!

My real day time job has been crazy the last 2 months and my computer death at home have prevented me from posting on a regular basis. Work has eased a bit and I have corrected my problem with my computer at home. Regular posting will begin!

Stick around and lets ride the market through the summer.

Multikine gets orphan drug status

CEL-SCI Corporation announced today that its cancer drug Multikine® has been granted orphan-drug designation as neoadjuvant therapy in patients with squamous cell carcinoma of the head and neck (head and neck cancer) by the United States Food and Drug Administration (FDA).

An orphan drug is any drug developed under the Orphan Drug Act of January 1983 ("ODA"), a federal law concerning rare diseases (orphan diseases"), defined as diseases affecting fewer than 200,000 people in the United States. In 2003, the leading orphan drug by worldwide sales revenue was Amgen's Erythropeietin (Epogen®), with sales of $2.4bn.

Geert Kersten, CEO of CEL-SCI said, "Receiving orphan-drug designation for Multikine is yet another major achievement for CEL-SCI, following the go-ahead from the FDA earlier this year for the Company's Phase III study in advanced primary head and neck cancer patients and the subsequent raising of substantial funds in April, 2007. We are putting in place all of the pieces required to make this company very successful."

(Amex: CVM) closed friday's trading at 81 cents per share.

Further Reading: A letter to shareholders:

Dear Fellow Shareholders:

So far 2007 has been an excellent year for CEL-SCI and its cancer product Multikine®. In January we received the US FDA go-ahead for the Phase III clinical trial with Multikine, a huge achievement for any drug, yet an even bigger achievement for a completely new type of drug such as our Multikine. We followed this up with a $15 million commitment to finance the Multikine manufacturing facility in Baltimore, Maryland and another $15 million in equity financing in April. In June we announced that we received orphan drug status from the FDA for Multikine. This designation brings many substantial benefits to the Company. I believe that the opportunity ahead for CEL-SCI is so compelling that I have continued to purchase CEL-SCI stock in the open market.

In talking to investors it has become clear to me that few investors understand the enormous impact that our Multikine will have on the treatment of cancer if we can confirm in our Phase III study the impressive survival results we have seen in our Phase II trial. I believe that a background summary on Multikine is helpful for that reason.

    Background Summary on Multikine:
   -- The science:  The science behind Multikine is based on the premise that
      a healthy immune system can cure cancer.  When the immune system is
      imbalanced or weakened, diseases like cancer occur.  Balancing and
      strengthening the immune system is thought to be an effective strategy
      in fighting cancer.

   -- What is Multikine?  Multikine is a mixture of naturally occurring
      cytokines, substances that regulate the immune system.  The patented
      Multikine mixture is representative of the mixture of cytokines
      produced by a healthy immune system.  CEL-SCI scientists have published
      in the highly regarded "Journal of Clinical Oncology" that many
      different cytokines working together are needed to put in motion the
      comprehensive immune response needed to fight cancer.  Most other
      immunotherapies being developed are based upon the use of only one
      cytokine.

   -- How is it used?  Multikine is the first cancer immunotherapy being
      developed as a first line treatment.  This means it is administered
      prior to any other cancer therapy (e.g. surgery, radiation and/or
      chemotherapy) because that is the time when the immune system can still
      be fully activated.  Once the patient has had surgery or has received
      radiation and/or chemotherapy, the immune system is severely weakened
      and less able to mount an effective immune response.  We believe that
      most of the failures of immunotherapy drugs up to now have been the
      result of giving immunotherapy after the patient's immune system was
      damaged by other cancer therapies.

   -- How does it work?   Multikine works in two ways:
      1. It signals the immune system to mount an effective immune response.
         Multikine changes the type of immune cell that attacks the tumor
         from a CD-8 cell to a CD-4 cell.  This is important because tumors
         are able to defend themselves against the normal CD-8 cell attack,
         but appear to be unable to defend themselves against the CD-4 cell
         attack.  The CD-4 cell breaks what is known as "tumor tolerance,"
         thereby allowing the immune system to see and attack the tumor.

      2. Multikine has been shown to render cancer cells much more
         susceptible to radiation and chemotherapy treatments, thereby making
         these treatments much more effective.

         The combination of both of these is very important because Multikine
         will fight the tumor on two fronts, without toxicity.

   -- Results:  In a Phase II clinical trial, Multikine was shown to increase
      overall survival by 33% 3.5 years after the first treatment.

   -- Its effect on recurrence of cancer:  Chemotherapy, surgery and
      radiation do not always succeed in killing all the cancer cells.  The
      persistence of cancer cells is responsible for cancer recurrence.
      Multikine is injected around the tumor and into the local lymph nodes
      because those areas are the most likely places for the cancer to recur
      if any of the cancer cells survive.  Multikine uses the immune system
      to kill those cancer cells before they cause tumor recurrence.

   -- Safety:  Multikine has been shown to be safe and non-toxic in multiple
      studies.  This was not surprising because Multikine consists of
      naturally derived substances given in very small dosages, just as the
      body does itself every day.

   -- Potentially useful for multiple tumors:  Despite the fact that the
      Multikine treatment given to each patient is the same (i.e., not
      patient specific), the immune response induced by Multikine is
      completely targeted to the patient's own tumor.  This means that
      Multikine may be useful against many different tumors.  Multikine has
      already shown activity in small studies in cervical dysplasia/neoplasia
      and prostate cancer.  One of its mechanisms of action suggests that it
      should also be developed as an enhancement of radiation and
      chemotherapy.

   -- Clinical Status:  Multikine is currently cleared for a Phase III
      clinical trial in the US and Canada in advanced primary head and neck
      cancer patients.  These are recently diagnosed, not yet treated
      patients. Head and neck cancer is an aggressive cancer that accounts
      for about 500,000 - 600,000 new annual cases of cancer world-wide.

      Advanced primary head and neck cancer patients typically have a 50%
      chance of survival three years following the first treatment.
      Treatments for newly diagnosed head and neck cancer have not
      significantly improved over the last 50 years and therefore constitute
      a clear unmet medical need.

      The Phase III study, which is designed to prove that Multikine works,
      is expected to enroll about 800 advanced primary head and neck cancer
      patients worldwide.  In its last Phase II clinical trial Multikine
      increased overall survival by 33%.  The Phase III study will need to
      show a 10% increase in overall survival to be successful.

   -- Market size:  The current Phase III clinical trial pits Multikine plus
      the standard of care treatments against the standard of care treatments
      alone.  A win for the Multikine treatment group would mean that every
      patient with advanced primary head and neck cancer is supposed to get
      Multikine.  This would translate into a market potential of $15
      billion.

We believe that Multikine will ultimately be added to the cancer treatments of many solid tumors. This it will have a huge impact on the treatment of cancer because curing more patients with the first cancer treatment will significantly decrease the number of cancer deaths. We thank you for being part of this dream.

As shareholders we truly value your participation in and support of our company. In an effort to improve our image, which has not yet caught up to where the company is today, we are currently redeveloping our corporate identity and redesigning our website. You are our most important advocates and we want your voice to be heard. We would like to collect some personal letters from you that describe why you support CEL-SCI and Multikine, and what your hopes are for Multikine. Our hope is to publish these letters on our website. Please mail these letters to Gavin de Windt, Investor Relations Manager, CEL-SCI Corporation, 8229 Boone Boulevard, Suite 802, Vienna, VA 22182, USA or send it by e-mail to gdewindt@cel-sci.com .

Panel Rejects New Weight-Loss Drug

Federal Panel Rejects Sanofi-Aventis Weight-Loss Drug Rimonabant

WASHINGTON-- Federal health advisers unanimously rejected a weight-loss drug Wednesday after hearing testimony that it increases the risk of suicidal thoughts, even in patients without a history of depression.

The manufacturer, Sanofi-Aventis SA, further failed to show the drug rimonabant is safe, the panel said.

The back-to-back, 14-0 votes by the expert panel made it unlikely the Food and Drug Administration will approve the drug. The agency usually follows its panel's advice, but it isn't required to do so.

"There is a reasonable suspicion we better learn some more and watch this affair more closely before we launch into massive use of this drug," said panelist Dr. Jules Hirsch, a senior physician at New York's Rockefeller University.


SNY fell $1.31 in afternoon trading to close at 43.07 per share. In afterhours trading, the trend continued losing another 59 cents a share.

This is a cannaboid receptor binding drug---yes that one. I will post the mechanism of action soon. It's very interesting how this drug supposedly suppresses appetite.

I have internet connection problems this week, soon to be remedied, so that mechanism will be posted ASAP. thanks.

Good Article: Time to get some Genentech?

Genentech shares have nose-dived 16% over the last 6 months--from $89.05 on January 19 to $74.78 on June 7--due, at least in part, to a dearth of positive, stock-moving news. But that decline could now give stock-pickers just the right opportunity to buy.

Proving that point Jennifer Chao, an analyst at Deutsche Bank, says Genentech (nyse: DNA - news - people ) is a smart pickup because of a 52-week low in share price and a compelling valuation.

Also, Chao said there are new developments afoot that could act as catalysts for the stock. "The next 12 months represent major upside to fundamentals with multiple shots on goal," Chao wrote.

She wrote that her analysis shows positive results for the Phase III C-08 adjuvant colon cancer study, assigning a 60% positive outlook on first interim look in the second half of 2007, 75% on second interim look in the first-half of 2008, and 85% on third interim look in the second half of 2008.

A significant positive interim analysis in the second-half of 2007, Chao wrote, would translate into near immediate off-label usage and rapid penetration into adjuvant colon cancer with implications in other off-label indications. Regulatory filing would be anticipated in the first-half of 2008, with approval by late 2008 or early 2009.

Chao upgraded Genentech to "buy" from "hold." In Monday morning trading, shares of the company rose 1%, or 76 cents, to $77.73.

Source: Forbes online

La Jolla Shares Surge on Riquest Data

La Jolla Pharmaceutical Shares Surge on Presentation of Riquent Data

Shares of La Jolla Pharmaceutical Co. surged as the company highlighted positive data from several prior studies of its lupus drug candidate Riquent.

The stock surged $1.02, or 18.7 percent, to $6.49 in midday trading on more than 5 times average daily volume. Shares have traded between $2.77 and $8.68 over the last 52 weeks.
900-milligram doses were increasingly effective in reducing antibodies. The goal of the Phase III clinical study, results of which were first reported in March, was to prevent or delay renal flare in lupus patients with a history of the condition and antibodies to the disease. It involved 101 patients.

Renal (kidney) problems are very common in patients with lupus. Remember that lupus erythematosus is a disease caused by immune complexes. What this means is that the body produces immune complexes whenever there is an antibody response to a soluble antigen (infection that elicits and immune response). Lupus is a immune complex disease that is characterized by the formation of antibodies to DNA. As a normal process of cell turnover, nuclei [DNA] is exposed as newly made cells leave the bone marrow and mature into red blood cells.

These immune complexes are small and tend to be trapped/formed inside tissues and, primarily in the kidney. Renal disease is therefore the most frequently encountered symptom of LE.

Riquent's mechanism of action is to inhibit the production of autoantibodies from immune cells [B plasma cells]. Riquent is an immunomodulating agent that induces tolerance in B cells directed against double-stranded DNA. It does this by cross-linking surface antibodies. Tolerance basically is the cells not reacting to an antigen any further and sometimes the cells actually die. The fewer positive cells that produce autoantibodies then helps slow the progression of the disease.

DUSA Revisited: Shares Jump today:

A Continuation from post 4/29/07: Today;

DUSA Pharmaceuticals, Inc., announced that the U.S. Food and Drug Administration (FDA) has granted Orphan Drug Designation for Levulan® (aminolevulinic acid HCl) Photodynamic Therapy (PDT) for the treatment of esophageal dysplasia. This disease occurs in some patients with Barrett's esophagus, a leading cause of esophageal cancer. The incidence of esophageal cancer is one of the most rapidly growing in the U.S., with more than 11,000 new diagnoses each year. Patients diagnosed with high grade dysplasia are at high risk for developing esophageal cancer and currently have limited treatment options.

Note that this is not a current indication from the FDA warning letter described on 29 April. Not even a skin lesion. Barrett's is a direct link to smoking, so this is big time news. More on how the mechanism of photoactivity treatment of dysplasia soon.

The Roller Coaster Ride Continues: DNDN

DNDN is up today (or this hour) ~40 cents a share in early afternoon trading. What's driving the volatility?
They are still trying to figure out exactly what the FDA really wants. More basic data is one thing, but additional clinical trial data and larger cohorts of patients is another.

One also has to realize that the patients in those clinical trials are at the last stages of the disease and are looking for something experimental to prolong life if not for a few days, or weeks.
The real benefit of the drug, in my opinion, would be to determine if the therapy is efficacious in newly diagnosed patients or people that have yet to present the later stages of disease. Using the treatments in combination with standard therapies is also being addressed.

DNDN is trading at $6.06 a share (up 6.5%) with roughly average volume.

DOW in uncharted waters today:

The Dow Jones industrial average rose 53.80, or 0.40 percent, to 13,362.87, after reaching a new trading high of 13,369.29. It was the blue chip index's 21st record close since the beginning of the year.

The Standard & Poor's 500 index advanced 4.86, or 0.32 percent, to 1,512.58 -- a new six-and-a-half-year high. The index is near its closing record of 1,527.46, reached March 24, 2000.

The Nasdaq composite index rose 4.59, or 0.18 percent, to 2,576.34.

The stock market has reacted well to the Fed's rate stance; the Dow has hit 43 record closes since the start of October, soon after the Fed stopped raising rates.


I believe that the most significant number here is the S & P being up, which is a more balanced index and IMO a better judge of overall economic strength. Let's ride the bull!!!

(Except DNDN--I will elaborate more on that disaster later....)

Stocks await Fed's move:

Wall street is anxious about todays Federal Reserve potential action that will outline it's decision on interest rates.

As soon as the news is out, it will be here.

In other biotech news, DNDN fell like a stone in today's trading, down 61% after the FDA requested additional data. I will update that news as well after market close.

Nasdaq is currently down 4.5 while the DOW is up 19.75.
The biotechnology index is down 0.5%.



UPDATE 11:30am PST---The Federal Reserve decided not to raise a key interest rate today. The funds rate will remain unchanged (the rate which banks charge each other) at 5.25%. Stocks intially retreated after the news, but have rallieda bit in afternoon trading.

Sunday Summary: What will the Fed do on Monday?

biotech follows the big boys:

After another record-setting week on Wall Street, investors are wondering whether stocks are due for a fall or are headed even higher. This week's words from the Federal Reserve and retail sales could provide some clues.

Recently, it has seemed as if nothing can derail the stock market's climb. Economic reports last week were mixed, but institutional investors remained enthusiastic thanks to soaring takeover activity. News Corp.'s bid for Dow Jones & Co. reinvigorated the stock market Tuesday after a morning of mixed economic news, and on Friday, reports that Microsoft Corp. might be mulling a buy of Yahoo Inc. nudged stocks higher despite lackluster jobs data.

Overall, economic data has shown slow and steady growth, alleviating investors' fears about recession. Still, worries linger about stagflation -- slowing growth amid soaring prices -- and what the Federal Reserve would do about it.

ApotheCure pulls injectable colchicine drug:

ApothéCure and FDA notified all healthcare professionals of recent deaths associated with the use of compounded injectable Colchicine 0.5mg/ml, 4ml vials, lot number 20070122@26. The company issued an immediate drug recall for all strengths, sizes and lots of compounded Injectable Colchicine sold within the last year. Customers are asked to examine their stock for ApothéCure compounded Colchicine on hand and to discontinue use immediately and prepare the product for return to the company.

I will elaborate on this later today. Briefly, colchicine is a anti cancer drug that stabilizes microtubules to keep cells from dividing.

DUSA Pharmaceuticals Receives FDA Warning letter

DUSA received a warning letter from the FDA concerning NDA #20-965 (Levulan Kerastick---aminolevulinic acid HCl ) topical solution.

It reads as follows:
"The Division of Drug Marketing, Advertising, and Communications (DDMAC) of the U.S. Food and Drug Administration (FDA) has reviewed an advertisement (MKT-1330 Rev C) for Levulan
Kerastick (aminolevulinic acid HCl) for Topical Solution, 20% (Levulan Kerastick) submitted by
DUSA Pharmaceuticals, Inc. (DUSA) under cover of Form FDA 2253. The advertisement is false or misleading because it presents efficacy claims for Levulan Kerastick, but omits and minimizes the risks associated with the use of the drug, broadens the indication, and overstates the efficacy of the drug. Therefore, the advertisement misbrands Levulan Kerastick in violation of the Federal Food, Drug, and Cosmetic Act (Act), 21 U.S.C. §§ 352(n) and 321(n), and FDA’s implementing regulations. See 21 CFR 202.1(e)(5); (e)(6)(i). This advertisement raises significant public health and safety concerns because it suggests that Levulan Kerastick is safer and more effective than has been demonstrated by substantial evidence or substantial clinical experience."

Bascially they are saying the company is misrepresenting the product by making claims of treating keratoses without data to support these claims.

SO WHAT IS THIS Levulan Kerastick?

Levulan Kerastick is a topical treatment for actinic keratoses (AK). Actinic keratoses are a direct result of prolonged exposure to sunlight. It is a small crusty, scaly or crumbly bump or horn that arises on the skin surface. They most likely appear on the face, lips, ears, scalp, neck, backs of the hands and forearms, shoulders and back — the parts of the body most often exposed to sunshine. AK's are considered the earliest stage in the development of skin cancer and they have the ability to progress into malignant skin cancer (squamous cell carcinoma).

The mechanism of action of levulan is not completely known and what is know in complicated. In brief, the drug consists of aminolevulinic acid (ALA) which is involved in heme synthesis (circular molecular structures much like the heme group in hemoglobin that carries molecular oxygen in red blood cells). The aminolevulinic acid is activated by sunlight and another product the patient applies that centers a very specific wavelength of light onto the affected area. When activated by light, the ALA is converted to another compound which then releases molecular oxygen (free radicals) and hydroxide ions. These molecular entities act as cytotoxic agents to kill kertosis developing cells.
That's a very basic mechanism of action of how this drug works, and has very complicated chemistry involved that I'm not exactly clear on either. Hope this helps.

DUSA closed friday's trading up 23 cents per share at $3.43. Investors do not seem to be worried.

Earnings update: 4-26-07

MMM up over 3 dollars per share (>4%) to $80.15.

BMY is down 60 cents a share to 29.11 as they are reporting lower 1Q profit as reflected by generic introduction of Plavix. BMY also lost patent protection of it's cholesterol drug Pravachol.

CYTK earnings due at 1:30pm Pacific. CYTK is trading down 5 cents/share in morning trading at $6.62.

IDIX earnings due at 1:30p pacific. Trading a bit down in light morning trading as investors await results.

MLNM is down 40 cents a share by narrowed 1Q losses, helped by higher sales of its cancer drug Velcade, royalties and a decrease in stock-based compensation expense. MLNM is trading at $11.55 a share at this hour.

Biotech Earnings Reports for Thursday, 4-26-07

Of the major pharmaceutical companies reporting tomorrow are:

3M (MMM)- time not specified. 3M has a hefty pipeline of drugs. Of note is the line of TLR agonists of their HCV and cancer interest. They are actively seeking a drug to complement imiquimod that treats HCV in addition to genital warts. MMM is expected to earn over 1 dollar per share.

Bristol-Myers Squibb (BMY) will announce earnings at an unspecified time. BMY has interests in cancer, ERBITUX and TAXOL. Viral products include Baraclude, which is a HBV drug. BMY is anticipating a 23 cent per share earning.

Cytokinetics (CYTK) will announce again at an unspecified time. CYTK is actively pursuing cardiovascular small molecule drugs. Cytokinetics is expected to report a net loss of40 cents per share.

Idenix Pharmaceuticals (IDIX) will announce a proposed loss of 30 cents per share. IDIX concentrates on viral diseases such as HCV, HBV and HIV. They have several drugs in phase IIb and II for treatment of HBV and HCV. IDIX is proposed to report a net 30 cent loss per share.

Millennium Pharmaceuticals (MLNM) will report no change before the market opens. MLNM has leukemia drugs in it's pipeline.

Will keep you posted on Friday's reports.

AVNR--riding a wave of good fortune

Avanir is still riding gains made since wednesday's announcement of positive results of Zenvia in diabetic neuropathy.
Minutes before the market closes today AVNR is up 11.5%, (that's another 46 cents a share ) to $4.37.

This stock might hit 10 dollars before this is all over!

AVANIR Pharmaceuticals Says Drug Shows Positive Results; Shares Soar

ALISO VIEJO, Calif.--(BUSINESS WIRE)--Avanir Pharmaceuticals today announced positive top-line results from the company's Phase III clinical trial evaluating the investigational drug Zenvia (dextromethorphan hydrobromide/quinidine sulfate ("DMQ")), an NMDA antagonist and sigma-1 agonist, in diabetic neuropathic pain.


HOW DOES ZENVIA WORK TO TREAT NEUROPATHIC PAIN? What is diabetic neuropathic pain?
Neuropathic pain is a condition basically defined by "as pain initiated or caused by a primary
lesion or dysfunction in the nervous system". That means researchers and doctors really don't know what actually causes neuropathy, but are working on how to treat the symptoms. The pain is described as shooting, electric or radiant. The pain was once described by elderly patients was that of their feet literally feeling like they were on fire and the patients had to be heavily sedated to combat it. I read somewhere in graduate school once that one person literally tried to cut their own foot off because of the pain.

So what about Zenvia? NMDA receptors are found in the brain (called glutamate receptors) that are mainly responsible for regulation of calcium flow in neurons. You may have heard of dextromethorphan as a cough suppressant. Inhibition of NMDA receptors stops calcium signaling, which is thought to alleviate pain.

Quinidine sulfate was originally used as a cardiac rhythmic drug. It's use in this case is stop the action of enzymes that degrade the dextromethorphan, thus raising it's therapeutic window.


Because of the encouraging data, AVNR ended today's trading up over 300% or $3.92 per share to close at $5.40 after hours.

Memory Pharmaceuticqls Continues Gains

Memory Pharma extended it's gains from Monday today on news that it's leading Alzheimer's drug candidate MEM1003. MEMY is trading up in late afternoon action 47 cents a share (thats up almost 20%) at $2.83. Monday MEMY traded up over 44%. The company has fully enrolled it's phase IIa clinical trial for MEM1003 which means a, they found enough people to run the study with mild to moderate disease; b, it tells investors that the company has confidence in the drug and will rather quickly know whether or not there is efficacy.

MEM1003 is a drug that targets L-type calcium channels in patients with Alzheimer's. Ongoing research strongly suggests that aging alters brain Ca2+ regulation, resulting in impaired neuronal function and, eventually, neurodegeneration.

Voltage-dependent Ca2+ currents and potentials are enhanced in neurons of aged experimental animals, and apparently are mediated by an increase in the membrane density of L-type voltage-sensitive Ca2+ channels. In addition, selective L-VSCC antagonists and other Ca2+ blockers can counteract the effects of aging on several aspects of neuronal and/or behavioral function, implying that channel activity may be necessary for the aging changes.
MEM1003 selectively blocks these channels and could help regulate calcium flow.

A new look is coming!

I intend to drop publishing the press releases from specific biotech companies and start looking at clinical trial data and moving stocks and expand from there, so there will be all original material from here on. I hope this makes the site more interesting and helpful at the same time. Any feedback on what I might be missing or what can make the site better, drop me an email.

ImClone Rallies on Erbitux News

A brief review of thursday's action; Markets closed today for Good Friday:

ImClone Systems and Bristol-Myers Squibb said Apr. 4 that their cancer drug Erbitux can improve the odds of survival in patients on chemotherapy whose head and neck cancers have spread. Investors bid up ImClone's stock nearly 5% to $42.49 on the Nasdaq, while Bristol-Myers Squibb, which is responsible for most of Erbitux's development and marketing costs, rose 0.9% to $27.78. What does this mean?

What is Erbitux and how does it work?
Erbitux is a humanized monoclonal antibody to the epidermal growth factor receptor (EGFR). The family of EGFRs include EGFR, HER2, HER3 and HER4. These receptors mediate and modulate the growth and differentiation of many cell types within the body. Specifically, [and in other cancers] it has been shown that in breast cancers, HER2 and EGFR are over-expressed and are a prognostic indicator of disease. Erbitux competitively inhibits the binding of epidermal growth factor (EGF) and other ligands, such as transforming growth factor alpha. Binding of ERBITUX to the EGFR blocks phosphorylation and activation of receptor-associated kinases, resulting in inhibition of cell growth, induction of apoptosis, and decreased matrix metalloproteinase and vascular endothelial growth factor production.

IMCL closed thursdays trading up 45 cents per share to 42.94.