A study conducted by OSI Pharmaceuticals Inc. of Melville and its partners in an anti-lung cancer drug, Tarceva indicates that the medication slows the advance of lung cancer when it is administered after chemotherapy.

On the other hand, another study has found that a combination of Avastin and Tarceva were ineffective in prolonging the life of cancer patients. 

The results of the study by OSI executives will be submitted at an upcoming medical conference. Thereafter they would be submitted to the US FDA for approval of Tarveca.

"We're very pleased," said Colin Goddard, OSI's chief executive. "With all of the progress we've made, we still have a long way to go, but this is a good step," he added. 

Jason Zhang, who follows the biotech industry for BMO Capital Markets in Manhattan, has remarked Tarveca would "outperform" rating on OSI stock. It could bring in $1 billion in sales globally for the companies.

"We expected this trial to be positive given its unique design and many supporting evidences," Zhang said.