On Thursday the FDA approved Avastin for the treatment of metastatic cancer of the colon or rectum. Analyst Michael King says Avastin received a label for use in combination with I.V.5-FU-based chemotherapy. He says this news is positive, as the drug may be used with either of the typical front-line regimens: Camptosar-based "Saltz," or Elexatin-based "Folfox."
He notes Avastin will be priced at $4,400 a month, which is higher than the previous $2,900 estimate. King says the possibility of stronger than expected sales could lead to upward earnings per share revisions in 2004. King upped the $1.44 2004 earnings per share estimate to $1.45, and raised the $1.80 2005 estimate to $1.96. He has a $137 target.