) has met with the FDA to discuss its Erbitux drug application. JP Morgan upgraded the stock to buy from market perform.
Analyst Jason Kantor believes Erbitux works and will be approved. He says the news on the tape indicates that the FDA plans to allow the company to resubmit Phase II Erbitux data, and supplement it with data from the ongoing European trail. He thinks this reduces the possibility that Bristol-Myers (BMY
) will attempt to break off the marketing deal with IMCL in which the company stands to receive $800 million in cash milestones, or 39% of sales.
He thinks Erbitux could reach the market by mid-2003 in the best case scenario, vs. his early 2004 forecast. He set a $36 price target. He sees a loss per share of $0.77 in 2002.