ImClone Rejects Bristol-Myers Offer

Biotechnology company ImClone Systems (New York, NY) has rejected the offer it received last month from its cancer drug partner Bristol-Myers (BMS, New York, NY) to acquire ImClone for $60 per share.

In a public statement issued, ImClone Chairman Carl Icahn said that the special committee formed at ImClone to review the unsolicited offer had determined that the offer was ?inadequate.?

The statement also said that Icahn has had several conversations with an unnamed CEO of an unnamed large pharmaceutical company. As a result of such conversations, the statement continued, ?the pharmaceutical company has submitted a proposal, subject to due diligence, but not subject to financing, to acquire ImClone for $70 per share in cash.? The pharmaceutical company will have two weeks to conduct due diligence.

Last month, BMS had proposed to acquire ImClone in an all-cash deal worth around $4.5 billion. ImClone had responded by saying it would review the deal and that its initial view was that the bid is much too low. The company has now confirmed its opinion by issuing its statement today.

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