ImClone mauled again despite profit

BIOTECH firm Imclone Systems, that shot to fame when Martha Stewart famously sold her shareholding two-and-a-half years ago, has seen its share price savaged again.

Three years ago the stock dropped 16% the day after Stewart sold her shares following bad news from the Federal Drug Authority delaying approval of its colon cancer drug Erbitux - news which prosecutors claim Stewart improperly profited from.

But the share price has now been knocked down 18.9% despite seemingly excellent sales of Erbitux, which was finally approved in February.

Imclone's revenues were $71.4m (£38.5m) for the quarter, which met analysts' expectations, but industry insiders reckoned the figure to be $10m shy of what it should be.

The fact that the company made a profit did not impress investors either - its net earnings were $24m, compared with a $34.8m loss a year ago.

Momentum buyers of Imclone's shares, who pushed the price up nearly $50 to $80.73 over the past 52 weeks, saw plenty of their profits evaporate. The price finished the day at $65.44.

But that price also holds an irony. During her trial for lying to investigators, Stewart revealed that before hastily selling she had set a target of $60 for the stock. Had she stayed in she would have made her expected profit and not now be facing five months in prison.