ImClone Systems recorded a 7% rise in second quarter income to $26 million dollars on the back of an impressive 25% boost to net revenue for the second quarter of 2005 to $92.4 million, versus the corresponding quarter last year [[22/07/04e]], which was in turn driven by a 37% hike in sales of the flagship colorectal cancer agent, Erbitux (cetuximab), to $98 million. However, investors seemed once again to be less than impressed with the Erbitux performance, and ImClone’s share price sank by more than 4% during morning trading on the Nasdaq Stock Exchange yesterday, despite the firm also revealing that it plans to seek the nod for the drug in head and neck cancer in the third quarter of the year.

License fees and milestone revenue of $25 million were 4% higher than last year, while ImClone says that higher volume purchases by Bristol-Myers Squibb – the firm’s partner for Erbitux – in the second quarter of this year were offset by a lower selling price in 2005, versus 2004. Royalty revenue of $42 million during the three-month period was up 47%, and included a $38 million payment from B-MS in relation to its sales of Erbitux.

Collaborative agreement revenue rose 47% to $18 million as a result of increased purchases of clinical materials by Merck KGaA – the company’s European partner Erbitux – and higher reimbursements for royalty payments. Research and development costs were up almost 30% to $24 million.