Eli Lilly in talks to buy ImClone

ImClone was not bluffing after all. The company rejected both of Bristol-Myers Squibb's offers as "inadequate" and "absurd," with Imclone's CEO Carl Icahn and BMS Jim CEO Cornelius exchanging harsh words in between. ImClone insisted it had another suitor in the wings with a much better offer.

Now the news is out. Pharma giant Eli Lilly will bid $6.1 billion, at $70 a share, according to a report in the Wall Street Journal. Insiders say Pfizer was also among BMS's competition, although the details of its bid have not be revealed. Lilly has just before midnight tonight to make a decision.

ImClone hasn't confirmed anything. The company released a statement saying a "large Pharma company has completed due diligence and made a proposal" but that "the company has requested that ImClone not divulge its name until negotiations are completed."

Eli Lilly has been vocal about its desire to beef up its biotech pipelines. In a recent speech, Lilly chairman and CEO John Lechleiter (photo) reiterated the company's focus on biologics, saying that biotech drugs would be Lilly's preferred choice from now on.

- see ImClone's release
- check out the WSJ Health Blog article

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