Back to top

Analyst Blog

Good news flowed in at Bristol-Myers Squibb (BMY - Analyst Report) from Canada when Health Canada, the federal department responsible for health related matters in the country, cleared its cancer drug Erbitux for an additional indication.

The Canadian unit of Bristol-Myers announced that the approval was for the use of Erbitux as a first-line treatment in combination with FOLFIRI (irinotecan, 5-fluorouracil, leucovorin) in patients with wild-type KRAS, epidermal growth factor receptor (EGFR)-expressing metastatic colorectal cancer (mCRC).

Health Canada approved Erbitux for the new indication on the basis of data from an open-label, randomized, multicenter, European phase III study (CRYSTAL). This is the first new biologic therapy to be cleared in eight years for patients newly diagnosed with mCRC.

We note that Erbitux is available in Canada since 2008 for the treatment of EGFR-expressing metastatic colorectal cancer in patients whose disease progressed after chemotherapy. The label expansion of Erbitux in the country should boost the sales potential of the cancer drug.
The colorectal cancer market represents huge potential. According to the data provided by the company in its press release, about 23,300 cases of colorectal cancer occurred in 2012. It is estimated that colorectal cancer was responsible for 9,200 deaths in Canada in 2012.It is estimated that colorectal cancer was responsible for 9,200 deaths in Canada in 2012. Apart from Erbitux, the colorectal cancer market includes Amgen’s (AMGN - Analyst Report) Vectibix.

We currently have a Neutral recommendation on Bristol-Myers, which carries a Zacks Rank #3 (Hold). Large-cap pharma companies that currently look more attractive include Novartis (NVS - Analyst Report), Bayer (BAYRY - Analyst Report) and Sanofi (SNY - Analyst Report). These Zacks #2 Ranked (Buy) stocks are expected to perform strongly in the coming quarters.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.55 +11.64%
CHINA BIOLO… CBPO 55.57 +7.40%
BITAUTO HOL… BITA 96.14 +5.58%
LUXOFT HOLD… LXFT 38.77 +3.64%
INSITE VISI… INSV 0.30 +3.41%