Icahn's recent winners include Time Warner (TWX); ImClone, which Eli Lilly (LLY) bought recently; and the Stratosphere, a Las Vegas hotel and casino that Icahn sold at a big premium. His effort to get board representation on Biogen (BIIB) came up short, however. And the jury is still out on Yahoo! (YHOO) and Motorola (MOT), in which he has large stakes and board representation.

News of the Bristol-Meyers (BMY) offer to buy out ImClone (IMCL) deal triggered a flurry of option activity in Amgen (AMGN),
Onyx Pharmaceuticals (ONXX), and Amylin (AMLN) said option strategist Frederic Ruffy.

3 Stocks I Saw on TV:
Dan Fitzpatrick examines three stocks viewed on 'Fast Money'. Today's stocks include Capital One, MSCI Emerging Markets and Imclone.

Click here to watch the video.

As of March 31st the following were Carl Icahn’s top 5 holdings; Biogen (BIIB), Blockbuster (BBI), Imclone (IMCL), Motorola (MOT) and Yahoo! (YHOO). This hasn’t been the best Carl year, observes Karen Finerman. Sometimes the most talented doctors have patients who die, adds Jeff Macke.

We’re talking about lung cancer, explains CNBC Pharmaceuticals Reporter Mike Huckman. Look for headline-grabbing test results out of ImClone (IMCL).

Imclone (IMCL) was downgraded from Equal-weight to Underweight, Morgan Stanley said. $38 price target. Do not expect ASCO data to meet expectations. Erbitux sales estimates also cut.

Imclone (IMCL) was upgraded to Buy, Citigroup said. $52 price target. Expect the company to post positive FLEX data at the upcoming ASCO conference.

Imclone Systems (IMCL) was upgraded to Outperform, Cowen said. Company has yet to receive full credit for FLEX trial. Risk-reward is attractive, given the commercial viability of Erbitux for lung cancer.

Favorite bio-tech.

Finally, we have ImClone Systems making the list. This biotech's CEO, John H. Johnson, recently purchased 13,609 shares worth half a million dollars. Just days later, the stock rocketed 18% following positive news about ImClone's cancer drug Erbitux. Johnson says it was just "pure confidence."
After Johnson took the job at ImClone on Aug. 27, he agreed to buy $500,000 worth of company stock within 90 days of joining the company. Johnson bought 13,609 shares for an average price of $36.74, and within 3 days he saw the stock surge 6.97 per share- not a bad return on his investment.

"The company believes it is important for a CEO to use his own money to buy stock of ImClone -- so he's not just working with stock option money but using his own funds," ImClone's general counsel Daniel O'Connor said. "That leaves him standing in the same shoes as his shareholders."

The great timing of Johnson's purchase touches a sensitive subject at ImClone. In late 2001, original ImClone CEO, Sam Waksal, and buddy Martha Stewart, were thrown in jail for making trades based on insider information about Erbitux.

Another positive note for ImClone is that analysts at Rodman & Renshaw reiterated a market outperform rating on the company. They believe positive trial results for its drug Erbitux will prove that it is effective against lung cancer. They also mention that shares plunged 11% last Friday following an unjustified downgrade by another equity research firm. The firm stated predictions about the trial results which Rodman & Renshaw believe to be too low and statistically insignificant.

Rodman’s statistical assumptions, calculated by Dr. Elaine Allen, Associate Professor of Statistics & Entrepreneurship at Babson College, show phase 3 studies of Erbitux report an increase in overall survival. Dr. Allen has predicted the outcomes of drugs including the rejection of Gilead’s adefovir for HIV and OSI Pharmaceutical’s BR.21 trial of Tarceva for advanced NSCLC. Another note, Genetech's Avastin will continue to be the leader in lung cancer treatment, but Erbitux will significantly expand into the market for patients who are ineligible for Avastin. Rodman & Renshaw raise their target price to $55 based on ImClone's positive trial results, 3-year EPS of 22%, and forward P/E of 23.

suspected lack of ethics

Icahn is nervous