ImClone stock falls on failed Erbitux study

NEW YORK (CNNMoney.com) -- The drug Erbitux failed to stop the spread of lung cancer in patients in a late-stage study, drugmakers Bristol-Myers Squibb and ImClone Systems said Thursday.

ImClone's (down $0.08 to $35.90, Charts) stock dropped more than 4 percent on the news, while Bristol's (up $0.69 to $31.62, Charts, Fortune 500) stock slipped 1 percent.

Erbitux failed to stop the spread of cancer in 600 patients who had not been previously treated for lung cancer, according to the New York-based companies. The drugmakers said this is one of several studies focusing on lung cancer, and the results of the largest study hasn't been released yet.

Erbitux is already on the U.S. market as a treatment for head and neck cancer and colorectal cancer. Bristol and ImClone, a biotech, are trying to get the drug approved for additional uses, which could result in additional sales.

The drug's sales totaled $652 million in 2006, a 58-percent jump from the year before, according to Bristol, which plays royalties to Erbitux developer ImClone.