Bristol-Myers Squibb

Merck KGaA eyes ImClone, but isn't mystery bidder

Maureen Martino — Wed, 01 Oct 2008 10:06:35 -0400

Merck KGaA is entering the Bristol-Myers Squibb/ImClone buyout fray. While the German company said it isn't prepared to bid for the whole company, it would be interested in partnering with another drug company to outbid BMS's current $62-per-share offer.

Merck doesn't have the cash on hand buy ImClone. But speaking to the International Club of Frankfurt Business Journalists, CEO Karl Ludwig Kley, had this to say: "[I[f anyone contacts us to ask whether we want to participate, we will certainly listen carefully... Anyone who wants to take Erbitux further would be well advised to talk to us." Kley claimed that he doesn't know who the mystery bidder is.

Currently BMS owns 61 percent of the U.S. rights to Erbitux and Merck owns 90 percent of the ex-U.S. rights. "Bristol-Myers can't be happy about Merck's statement that it would in effect support a rival bid," Erik Gordon, a management professor at Stevens Institute of Technology, commented in Forbes.

In mid-September, Kley stated that Merck KGaA is planning a series of acquisitions over the next three years to grow its consumer health and life sciences businesses.

- here's the Forbes article
- read this PharmaTimes report

ImClone says mystery bidder will be revealed

John Carroll — Mon, 29 Sep 2008 11:49:19 -0400

ImClone says that it expects a mystery bidder to either reject a takeover move or formally offer $6.1 billion for the biotech company. And ImClone says it will name the bidder one way or the other. In a dig at Bristol-Myers, ImClone says that a competing offer won't be contingent on financing. This is the second time that ImClone has pushed back the deadline on the mystery suitor.

ImClone Chairman Carl Icahn has been heaping scorn on Bristol-Myers Squibb's latest $5.4 billion offer, a $62-per-share bid. But many observers have noted that BMS is still a likely winner in any contest for ImClone, as it already owns 17 percent of ImClone's stock along with U.S. marketing rights to Erbitux.

- check out the Imclone release
- read the report from the Wall Street

Icahn to BMS: Your $62 hostile bid is 'absurd'

John Carroll — Wed, 24 Sep 2008 10:12:44 -0400

The letters being exchanged between ImClone Chairman Carl Icahn and Bristol-Myers Squibb CEO Jim Cornelius are taking on a sharp edge. Razor sharp. Icahn's letter in response to BMS' hostile $62-per-share bid labels the offer "absurd." He also says that Cornelius has been, ahem, misleading.

And then he gets nasty.

"If you wish to make your attorneys wealthier, I can show you more productive ways to do so," writes Icahn. "Or, if you simply want publicity, I can also help you in that regard without your having to make unnecessary expenditures."

Maybe next time Icahn sits down to add to the correspondence he will become more insulting--perhaps offering to let the chairman of the mystery "large pharma" company that he says has offered $70 a share beat up BMS's chairman. In the meantime, it appears that BMS and ImClone are still far apart on any possible acquisition.

- read the ImClone release and letter
- read the report in the Wall Street Journal

BMS fires off $62 offer as it battles for ImClone

John Carroll — Tue, 23 Sep 2008 10:55:20 -0400

If Bristol-Myers Squibb can't charm its way to a merger deal with ImClone, the company seems more than happy to force its way to one. BMS upped its bid slightly to $62 a share--up from $60--and said it was readying a proxy fight for control of the cancer developer's board.

That $62 bid is 48 percent higher than ImClone's average stock price ahead of the offer. But ImClone Chairman Carl Icahn, no stranger to the hardest bargaining tactics on Wall Street, has made it clear that he wants more. Much more. Icahn recently claimed that a mystery pharma company had bid $70 for the biotech company and had begun a due diligence investigation of its books. BMS is now firing back, saying Icahn's maneuvering is damaging ImClone.

"These delays," says BMS, "combined with ImClone's lack of transparency, have created a protracted period of uncertainty among your stockholders, employees and other constituents which could hurt the intrinsic value of ImClone's assets."

- read the article from MarketWatch

BMS may just "walk away" from ImClone proposal

John Carroll — Tue, 16 Sep 2008 12:00:27 -0400

Bristol-Myers Squibb is evidently feeling a bit spurned these days, what with a mystery suitor trying to charm ImClone with an offer that's $10 a share sweeter than BMS'.

"You should never fall in love with an asset," says CFO Jean-Marc Huet. Talking with analysts and investors, Huet made no secret of his affections for the "bolt-on" acquisition of ImClone. But "there are situations in which we are willing to walk away," he added.

ImClone chairman Carl Icahn, meanwhile, can barely contain his preference for anyone willing to bid the price higher than BMS' $60 per share offer. Icahn doesn't seem all that interested in love at the moment.

- read the report from Dow Jones

Icahn and Cornelius trade notes, barbs

Maureen Martino — Fri, 12 Sep 2008 12:47:26 -0400

Bristol-Myers Squibb CEO Jim Cornelius (photo) and ImClone Chairman Carl Icahn were in a letter-writing mood yesterday. In his second of two notes to Icahn, Cornelius expressed his disappointment that ImClone rejected BMS's offer "without discussing its merits with us and our advisors." He also laid claim to Erbitux's successor, IMC-11F8. "Bristol-Myers holds the exclusive, long-term marketing rights in the United States to Erbitux and related compounds, including IMC-11F8. Bristol-Myers has no intention of agreeing to any modifications to these rights," Cornelius asserted. He's clearly unhappy with Icahn's talk of possibly restructuring ImClone, which would separate it's Erbitux business from other drugs in development.

Icahn, never one to stay silent, responded with his own letter late yesterday: "I received today's letter from Bristol and don't understand your point," replied Icahn. ImClone's Chairman complained that BMS made the offer without alerting ImClone of its plans, and that Icahn tried to reach Cornelius before it made its rejection of the bid public. Icahn summarily rejected Cornelius' claim that BMS has exclusive rights to IMC-11F8, stating that BMS's rights to the drug aren't clear. "With respect to a potential restructuring of ImClone, rest assured that we will act in what we consider the best interests of all our shareholders and not just Bristol," finished Icahn.

- check out Cornelius's letter
- read Icahn's response

Icahn's mystery buyer could spark bidding war

John Carroll — Thu, 11 Sep 2008 12:19:46 -0400

Carl Icahn (photo) all but got out the bull horn yesterday and asked people to step right up and start offering some big numbers if they want to take over ImClone. After Icahn announced that a mystery bidder had offered $70 a share for ImClone--far higher than the $60 offer from Bristol-Myers Squibb--analysts chalked it up as the financier's clear effort to get the bidding started earnestly.

"This is Mr. Icahn's shot across the bow," Michael King, senior biotechnology analyst at investment bank Rodman & Renshaw, told the Wall Street Journal. "He's not going to wait for Bristol to make up its mind. He wants action." Deutsche Bank analyst Barbara Ryan is looking for a $70-a-share counter--putting a value of $6.1 billion on the deal--offer from BMS with no due diligence.

On the short list of Big Pharma companies possibly playing for ImClone are Pfizer--which has a big interest in oncology--and Merck KGaA. Sanofi-Aventis, GSK and AstraZeneca also make the list. But that's pure speculation--just what Icahn had in mind.

- read the story from the Wall Street Journal

ALSO: Accenture signed a new 10-year, $550 million agreement with Bristol-Myers Squibb for a range of finance and accounting and application development and maintenance services. Release

ImClone rejects BMS, gets higher bid

Maureen Martino — Wed, 10 Sep 2008 10:25:40 -0400

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

BMS, AstraZeneca present saxagliptin data

Maureen Martino — Tue, 09 Sep 2008 09:36:07 -0400

Bristol-Myers Squibb and AstraZeneca presented results from a 24-week Phase III study of Onglyza (the proposed trade name for saxagliptin). When used in combination with metformin, the drug produced significant reductions across all key measures of the glucose control studied.

The results were unveiled at the 44th European Association for the Study of Diabetes Annual Meeting. An NDA has already been submitted to the FDA and EMEA. If approved the drug could bring in $2 billion a year and will compete with Merck's DPP-4 inhibitor Januvia.

- check out the release

ImClone builds case for higher takeover bid

John Carroll — Thu, 28 Aug 2008 11:40:44 -0400

The executives at ImClone have been carefully crunching the numbers for both its pipeline drugs as well as Erbitux as it builds a case that Bristol-Myers Squibb's current offer is far too low to accept. Sources tell the Financial Times that the company could fetch $70 a share and that Erbitux alone may well be worth about $60 a share.

Much of the analysis is centered on ImClone's pipeline: five main cancer therapies in Phase I and II. The company has been particularly bullish about the prospects of IMC-A12 for prostate cancer. ImClone has been considering splitting up its R&D programs from Erbitux as a possible alternative to a takeover.

"I would say we thought [the company] was worth $70 plus or minus," an industry source familiar with ImClone told the Financial Times, adding that he still felt the pipeline and infrastructure was "pretty interesting."

- read the article from the Financial Times

Pfizer fails again in late-stage anti-clotting trial

John Carroll — Wed, 27 Aug 2008 12:26:16 -0400

There's more bad news for Pfizer's pipeline. An anti-clotting drug it is developing with Bristol-Myers Squibb--apixaban--failed to perform better than Lovenox in a late-stage trial. And the disappointing results persuaded the developers to postpone any new drug application for approval, which had been expected in the second half of '09. Researchers for the company say they are considering other studies of the drug to prevent VTE, ailments that include deep vein thrombosis.

In the comparative trial, bleeding rates were comparable between the two therapies and researchers noted that Lovenox performed much better than it had in previous studies. That leaves Pfizer with yet another in a string of late-stage trials that failed to measure up to expectations. The Wall Street Journal notes that in the past two years the pharma giant has had five late-stage programs that either missed critical endpoints or were dropped from its pipeline.

- check out the release
- read the report from the Wall Street Journal

BMS inks $710M development deal with PDL

John Carroll — Wed, 20 Aug 2008 10:20:13 -0400

Bristol-Myers Squibb is paying $30 million upfront in a licensing deal for PDL BioPharma's experimental blood cancer vaccine elotuzumab. And will it pay up to $680 million more if the Phase I cancer therapy hits all of its development and sales milestones. The anti-CS1 antibody binds to a protein that plays a key role in multiple myeloma, flagging it for destruction by the human immune system. BMS agreed to cover 80 percent of the development costs with PDL putting up 20 percent. The two plan to share profits in the U.S. And the deal includes an option to collaborate on PDL241 after it completes preliminary testing.

"Consistent with our company's strategy to integrate external innovation and to expand our capabilities, this collaboration will further strengthen our pipeline of agents targeting hematologic malignancies, which includes SPRYCEL and tanespimycin, an Hsp90 inhibitor from our recent acquisition of Kosan Biosciences," said Francis Cuss, M.D., senior vice president, discovery and exploratory clinical research, Bristol-Myers Squibb.

--read the AP report
--read the Bristol-Myers Squibb release

ImClone buyout could founder over drug dispute

John Carroll — Mon, 11 Aug 2008 01:18:51 -0400

The jockeying over price and potential that's taking place between ImClone and its would-be buyer Bristol-Myers Squibb may well boil down to resolving who controls the rights to the future successor of the blockbuster cancer med Erbitux. According to the Wall Street Journal, ImClone says it owns the rights to the next-gen drug, IMC-11F8, which isn't likely to appear for several years. Bristol-Myers is contesting that position, though. And the fight could come to a head if ImClone decides to spin off its pipeline of new drugs, which some analysts say could be worth up to a billion dollars. Ownership of the experimental drug could take years to clarify.

"My read is that the contract language is nebulous," Cowen & Co. analyst Eric Schmidt said. There is "clearly room for [Bristol] to claim one thing and [ImClone] the other."

- read the article in the Wall Street Journal

ImClone plays hard to get, considers spin-off

John Carroll — Mon, 04 Aug 2008 12:09:08 -0400

Don't expect Carl Icahn to be grabbing any first bid that comes his way--especially if it's Bristol-Myers Squibb's paltry $4.5 billion for ImClone, where the renegade investor now holds sway as chairman of the board. The company is studying the offer, but says the bid "substantially undervalues" its worth. And Icahn has reportedly told the board he doesn't favor the offer.

One option: Spin off the development side of the company into a new venture, which could be worth an estimated $1 billion.

"Based upon preliminary internal data, and recognizing that the pipeline products are in various stages of development, the board still believes that the company's pipeline business may be extremely valuable and significantly increase stockholder value as a separate business," the company said.

Whether the company is serious about a spin-off or just wants BMS to get on to its next, sweetened offer will soon become apparent.

- see ImClone's release
- read the story from the Star-Ledger

BMS offers $4.5 billion for ImClone

John Carroll — Thu, 31 Jul 2008 12:10:45 -0400

Notch a win for Carl Icahn's aggressive strategy in the biotech field. Bristol-Myers Squibb is offering to pay $4.5 billion to buy ImClone Systems at $60 a share. That's a 40 percent premium over the past month's average and a sweet victory for Icahn, who had pushed and prodded for a broad management shakeup. BMS and ImClone jointly market the blockbuster cancer drug Erbitux and BMS already owns 17 percent of its partner.

There's no doubt who most needs to bless the deal. BMS CEO Jim Cornelius wrote a letter to Icahn singing praises for the deal. "A full combination of BMS and ImClone is a natural fit for both our companies, and we are convinced our proposed price represents a full and fair offer for ImClone."

- read the story in the Wall Street Journal

Ipilimumab - Next gen biotech blockbusters

Maureen Martino — Tue, 08 Jul 2008 16:02:05 -0400

Drug: Ipilimumab
Company: Bristol-Myers Squibb, Medarex

Scoop: Ipilimumab is a fully human anti CTLA-4 monoclonal antibody that BMS is testing as a treatment for metastatic melanoma and other cancers, including prostate and lung cancers. The drug was originally slated for submission this year, but BMS and Medarex announced in April that they would delay filing a BLA for the drug after the FDA requested additional overall survival data on the drug. Pfizer is also developing an anti CTLA-4 monoclonal antibody--called tremelimumab--but the company recently halted a Phase III trial of the drug after researchers concluded it was no more effective than standard chemotherapy. Analysts say either ipilimumab or tremelimumab could have a significant impact on the melanoma market if approved.

Exelixis gets $150M credit line

Thu, 05 Jun 2008 06:59:54 -0400

Exelixis has struck a $150 million financing deal with Deerfield Management. At Exelixis discretion, the developer can draw down the money as needed over the next 18 months in $15 million installments.

"This transaction significantly increases our financial strength and flexibility over the next 18 months, even if we don't draw on the facility," said George A. Scangos, president and chief executive of Exelixis. "The Deerfield facility gives us the time to see our way through this period of major pipeline and business milestones and puts us in a position of strength as we advance our various partnering discussions."

- here's the release on the financing
- read the AP report

BMS buys Kosan for $190M

Thu, 29 May 2008 06:59:58 -0400

Bristol-Myers Squibb is adding two oncology drugs to its pipeline with the acquisition of Kosan Biosciences. The company is paying $5.50 per share in cash for Kosan and gains two anticancer agents: novel Hsp90 (heat shock protein 90) inhibitors and epothilones.

"Kosan has done great work advancing two classes of novel anticancer medicines: epothilones and Hsp90 inhibitors," said Elliott Sigal, M.D., Ph.D., executive vice president and chief scientific officer, Bristol-Myers Squibb. "Epothilones are microtubule stabilizers with multiple therapeutic applications in various cancers and potentially in neurodegenerative diseases. The Hsp90 program includes a Phase III compound for the treatment of patients with multiple myeloma, an area of high unmet medical need."

- see the buyout announcement for more

BMS inks $227M collaboration deal with KAI

Tue, 13 May 2008 06:59:55 -0400

South San Francisco-based KAI Pharmaceuticals is getting a $25 million boost from Bristol-Myers Squibb---its upfront payment for a collaboration on KAI-9803, an experimental therapy to reduce the severity of a heart attack and improve clinical outcomes. BMS will also buy $10 million in KAI equity and up to $192 million in milestone payments and will pay for all future development efforts, including an upcoming Phase IIb. KAI also retains co-promotion rights in the U.S.

"This is a major milestone for KAI-9803, our most advanced of three clinical programs, and a strategically important collaboration for KAI," says CEO Steven James. "Bristol-Myers Squibb is a great partner for us with its impressive history of developing and commercializing breakthrough medicines in cardiovascular disease. We believe this deal is testimony to the value and potential of KAI-9803 and our broad proprietary technology around protein kinase C modulation." KAI was a 2006 Fierce 15 company.

- check out the press release
- read the Dow Jones report

ALSO NOTED: AMA joins DTC advertising fray; U.K. toughening up on pharma promos; and much more...

Fri, 09 May 2008 06:59:50 -0400

> We all expected Democrats to rake DTC ads over the coals during yesterday's hearing before the House Energy and Commerce Committee's oversight arm. What we didn't expect was for the American Medical Association to join the fray. DTC report

> U.S. lawmakers aren't the only ones toughening up on pharma promos. In the U.K., the industry itself is strengthening its code. Report

> Sanofi-Aventis and Bristol-Myers Squibb may have squashed copycat Plavix in the U.S., but competition is now popping up in Europe. Plavix report

> We've all heard the safety warnings about the Ortho-Evra birth control patch and its link to life-threatening blood clots. Public Citizen is now campaigning to have the patch taken off the market completely. Ortho-Evra report

> Researchers are touting the early results from a study of a new brain cancer vaccine that combines protein antigens extracted from a patient's tumor and matches them with white cells also drawn from the patient. Vaccine report

And Finally... The headlines may have died down in recent months, but bird flu experts say that the threat of a global pandemic has actually been growing. Report