Merck KGaA
(
MKGAF
) recently announced that Erbitux failed to achieve its primary
endpoint in the phase III EXPAND trial, conducted in patients with
advanced gastric cancer. Results showed that Erbitux plus cisplatin
and capecitabine failed to significantly increase progression-free
survival (PFS) in patients with advanced gastric cancer.
Earlier in May 2012, Merck KGaA had presented disappointing
interim results on Erbitux from a phase III study - PETACC-81.
Results from the study revealed that Erbitux, when given in
combination with standard chemotherapy (FOLFOX 4), did not prolong
disease-free survival in patients, as compared to those treated
with FOLFOX 4 alone.
Erbitux is currently marketed in the US and EU for colorectal
cancer and squamous cell cancer of the head and neck. The product
is under review in the EU for the first-line treatment of non-small
cell lung cancer.
Merck KGaA develops and commercializes Erbitux outside the US
and Canada under an exclusive agreement with ImClone LLC, a
subsidiary of
Eli Lilly & Co.
(
LLY
). In North America the product is marketed by
Bristol-Myers Squibb Company
(
BMY
), under another agreement with ImClone LLC. ImClone LLC
.
, Bristol-Myers and Merck KGaA co-promote the product in Japan.
Merck KGaA recorded Erbitux sales of €214 million in the first
quarter of 2012. The company expects Erbitux sales to be around
€865-€890 million this year.
Our Recommendation
Erbitux is one of the leading revenue contributors at Merck
KGaA. However, the oncology market is heavily crowded with players
like
Roche Holdings Ltd.
(
RHHBY
),
Pfizer Inc
. (
PFE
),
Sanofi
(
SNY
),
AstraZeneca
(
AZN
) and
Amgen Inc.
(
AMGN
).
Merck KGaA currently retains a Zacks #4 Rank (short-term Sell
rating).
AMGEN INC (AMGN): Free Stock Analysis Report
ASTRAZENECA PLC (AZN): Free Stock Analysis
Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis
Report
(MKGAF): ETF Research Reports
PFIZER INC (PFE): Free Stock Analysis Report
(RHHBY): ETF Research Reports
SANOFI-AVENTIS (SNY): Free Stock Analysis
Report
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