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American Morning
Minding Your Business: ImClone Controversy, Part Two
Aired February 13, 2004 - 07:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: The stock made infamous by the Martha Stewart trial gets a boost, but scandal is not too far behind.
Andy Serwer is "Minding Your Business," for a first check of business news on a Friday morning.
Nice to see you.
ANDY SERWER, "FORTUNE" MAGAZINE: Nice to see you again.
HEMMER: So, the drug gets approval.
SERWER: Right.
HEMMER: And now there are questions.
SERWER: Yes, there are questions again. It's just amazing what seems to follow this company, ImClone, and its controversial drug, Erbitux, at the center of the Martha Stewart trial, of course -- and Sam Waksal, the former CEO of this company, in jail right now, Martha Stewart on trial.
Yesterday, the FDA approved this drug, but high drama on Wall Street. The stock was trading around $44. Before the FDA made the announcement of approval, the stock plummeted to the mid-30s. OK?
Here's the chart. Look at that. Now, apparently there were rumors circulating through the market the FDA was not going to approve the drug. Someone took a bath here, Bill.
HEMMER: Wow!
SERWER: And there's an investigation by the government that's going on. Afterwards, the stock basically closed all day. The stock opened up in after-hours trading, and it popped right back up to $44. So, someone made a very bad series of trades.
HEMMER: Pre-market says what, do you know?
SERWER: Well, pre-market says the stock is back up to 44. So, it's pretty interesting.
Now, an interesting development here as well. Sam Waksal, the former CEO, wrote to CNN's Alan Chernoff from prison on January 15, saying my drug is everything I said it was, and it would not be here were it not for me. Well, you wouldn't be in prison either if it didn't involve some shenanigans as well. This is a controversial drug. It's not a cure-all. It's not a slam dunk. But it is approved now by the FDA.
HEMMER: We're two hours from the open on a Friday. What are you seeing?
SERWER: Well, we are seeing futures going up a little bit this morning, Bill, and what's happening is after hours yesterday, Dell announced some pretty good numbers. So, that stock should move briskly this morning.
HEMMER: We'll see you then. Thank you, Andy. Happy Friday to you.
SERWER: You, too.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Aired February 13, 2004 - 07:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: The stock made infamous by the Martha Stewart trial gets a boost, but scandal is not too far behind.
Andy Serwer is "Minding Your Business," for a first check of business news on a Friday morning.
Nice to see you.
ANDY SERWER, "FORTUNE" MAGAZINE: Nice to see you again.
HEMMER: So, the drug gets approval.
SERWER: Right.
HEMMER: And now there are questions.
SERWER: Yes, there are questions again. It's just amazing what seems to follow this company, ImClone, and its controversial drug, Erbitux, at the center of the Martha Stewart trial, of course -- and Sam Waksal, the former CEO of this company, in jail right now, Martha Stewart on trial.
Yesterday, the FDA approved this drug, but high drama on Wall Street. The stock was trading around $44. Before the FDA made the announcement of approval, the stock plummeted to the mid-30s. OK?
Here's the chart. Look at that. Now, apparently there were rumors circulating through the market the FDA was not going to approve the drug. Someone took a bath here, Bill.
HEMMER: Wow!
SERWER: And there's an investigation by the government that's going on. Afterwards, the stock basically closed all day. The stock opened up in after-hours trading, and it popped right back up to $44. So, someone made a very bad series of trades.
HEMMER: Pre-market says what, do you know?
SERWER: Well, pre-market says the stock is back up to 44. So, it's pretty interesting.
Now, an interesting development here as well. Sam Waksal, the former CEO, wrote to CNN's Alan Chernoff from prison on January 15, saying my drug is everything I said it was, and it would not be here were it not for me. Well, you wouldn't be in prison either if it didn't involve some shenanigans as well. This is a controversial drug. It's not a cure-all. It's not a slam dunk. But it is approved now by the FDA.
HEMMER: We're two hours from the open on a Friday. What are you seeing?
SERWER: Well, we are seeing futures going up a little bit this morning, Bill, and what's happening is after hours yesterday, Dell announced some pretty good numbers. So, that stock should move briskly this morning.
HEMMER: We'll see you then. Thank you, Andy. Happy Friday to you.
SERWER: You, too.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
