ImClone rejects BMS, gets higher bid

Everyone expected it, but now it's official: Bristol-Myers Squibb's $4.5 billion bid for ImClone just isn't enough. ImClone execs brought in JPMorgan to to crunch the numbers for both its pipeline drugs as well as Erbitux. The $60-a-share bid is far to low, and what's more, ImClone Chairman Carl Icahn says another, unnamed pharma company is willing to fork over $70 a share.

"Mr. Icahn...announced he has had several conversations with the CEO of a large pharmaceutical company. As a result of such conversations, 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." That's a 51 percent premium over yesterday's closing stock price, but even that figure might not be enough. "No determination has been made as to whether $70 per share would be adequate," ImClone continued in its statement. The mystery company will be given two weeks to study ImClone's books.

So who would be willing to pay that kind of money for ImClone? The WSJ Health Blog says the company appeals to any number of Big Pharmas who are looking to bolster oncology pipelines. Pfizer, GlaxoSmithKline, Novartis and Eli Lilly should all be considered as possible suitors, though with BMS already a major partner, things could get crowded over at ImClone if another Big Pharma company gets involved.

- check out ImClone's statement
- here's the article from the WSJ Health Blog

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