ImClone Board Opposes Bristol-Myers Offer

Biotechnology firm ImClone has responded to the offer that it received from Bristol-Myers Squibb for a buyout, saying it would review the deal but its initial view is that the bid is much too low.

Biotechnology firm ImClone (New York, NY) responded yesterday to the offer that it received last week from Bristol-Myers Squibb (BMS, New York, NY) for a buyout, saying it would review the deal but its initial view is that the bid is much too low.

The statement issued by ImClone also noted its board of directors has been discussing the possibility of separating its Erbutix business from its other pipeline businesses to maximize the value of the company.

Carl C. Icahn, chairman of the board, said that ImClone is investigating whether BMS had access to confidential information about its pipeline through the BMS designee who is a member of the ImClone board. Icahn pointed out that ImClone has an antibody, IMC-11F8, under development which, if ultimately approved for sale, might have a significant competitive effect on Erbitux and that BMS may have no rights to market that product under its agreements with ImClone.

ImClone also stated that Icahn advised the board that, in his capacity as a large stockholder, he is opposed to the BMS offer because he believes that it greatly undervalues the company. Other large stockholders are also opposing the BMS proposal

On July 31, BMS had proposed to acquire its cancer drug partner ImClone Systems in an all-cash deal worth around $4.5 billion.

For more information on the BMS offer, see BioPharm's previous news coverage.