CIBC World reiterates buy on ImClone (IMCL)/.
Analyst Matthew Geller says the revised deal with Bristol Myers to co-develop a colon cancer drug is a strong positive for ImClone, as it makes only minor changes to the initial pact, and increases Bristol Myers's role in the filing of biologics license application (BLA). Among new terms, instead of a $300M payment by Bristol Myers upon acceptance ofthe BLA filing, there will be an immediate payment of $140 million and an additional $60 million payment in one year, both independent of any FDA action; royalties to ImClone remain at 39% of revenues. Geller says the news of the new deal boosts his confidence that ImClone and Bristol Myers' February 26 meeting with the FDA went well. He has a $34 target.