Eli Lilly

Eli Lilly to buy ImClone for $6.5 billion

John Carroll — Mon, 06 Oct 2008 09:54:07 -0400

In what one analyst quickly termed an "act of desperation," Eli Lilly announced a deal to buy ImClone for $6.5 billion. That's a 51 percent premium over the share price for July 30, when Bristol-Myers offered $62 a share and fired up ImClone Chairman Carl Icahn to find a buyer willing to pay much, much more. Lilly's bid comes in at $70 a share.

"This is an act of desperation on the part of Eli Lilly," David Moskowitz, an analyst for Caris & Co., told Bloomberg. "Lilly will drain substantially all of its cash on the deal. Lilly is already bidding outside the range of what you think would be rational, but these companies are losing big products early next decade."

Lilly's blockbuster Zyprexa is losing patent protection in 2011. And as we've mentioned earlier, oncology drugs in the pipeline are becoming more and more attractive for the pharma set. Lilly already has 13 oncology drugs in its pipeline and now can add several more.

"By bringing together ImClone's and Lilly's marketed oncology products, pipelines, and biotech capabilities, we are taking a very important step forward in addressing the challenges of patent expirations we will face early in the next decade," says Lilly CEO John Lechleiter (photo). "We look forward to working with the ImClone team and their partners to ensure a smooth transition."

- check out the Eli Lilly and ImClone release
- read the article from the Indianapolis Star

Genentech teams with Glycart on antibody program

John Carroll — Fri, 03 Oct 2008 10:00:25 -0400

Genentech is teaming up with Roche and its subsidiary GlycArt to develop GlycArt's GA101 molecule, a humanized anti-CD20 monoclonal antibody being developed as a treatment for hematological malignancies and other oncology related B-cell disorders like non-Hodgkin's lymphoma. The therapy is currently in Phase I/II clinical trials for CD-20 positive B-cell malignancies, such as non-Hodgkin's lymphoma and lymphocytic leukemia.

Genentech, Roche and GlycArt will share development costs and Genentech says it will record $105 million in R&D during the third quarter. Genentech gains U.S. commercialization rights in the deal.

"With its unique mode of action, we believe GA101 has the potential to extend the therapeutic benefit over current standards of care, including treatment for patients who do not respond to current therapies," says Pablo Umaña, CSO and co-founder of GlycArt.

- check out the Genentech release

ALSO: Eli Lilly is paying an unspecified upfront fee for the licensing rights to the cancer products it develops in collaboration with Deciphera. Researchers for the two companies will work together on four different areas using Deciphera's selective or multi-kinase targeted B-Raf inhibitors. Deciphera can earn up to $130 million in a range of sales, regulatory and development milestones. Eli Lilly release

Eli Lilly in talks to buy ImClone

Calisha Myers — Thu, 02 Oct 2008 08:27:34 -0400

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

FDA again delays prasugrel decision

John Carroll — Mon, 29 Sep 2008 12:51:26 -0400

Analysts were in for a surprise with the news that the FDA is once again delaying any decision on prasugrel, a potential blockbuster anti-clotting drug developed by Eli Lilly and Daiichi Sankyo. The agency said last June it would need three extra months to review the drug, and now it says regulators need even more time.

Some of the analysts haven't lost hope, though, saying that absent an agency request for more data, any delay should be relatively short. But J.P. Morgan's Chris Schott has been sounding a cautionary note on that score. The Wall Street Journal, meanwhile, notes that the folks at Sanofi-Aventis and Bristol-Myers can only be ecstatic to hear that Plavix gets another stay on any new competition.

- check out the Lilly and Sankyo release
- read the report from the Wall Street Journal

Eli Lilly out to redesign itself as a biotech

John Carroll — Thu, 25 Sep 2008 12:58:40 -0400

Look for Eli Lilly to start looking more like a biotech company. That's the word from Lilly CEO--and newly named Chairman--John Lechleiter (photo), who used a speech in Indianapolis Wednesday to talk up the role of personalized medicine in tailoring new therapies to specific patient populations and speeding new drugs to the market.

"We're flat-out rejecting the conventional wisdom that says it must take 10 to 15 years, and a billion dollars-plus, to bring a single new molecule to patients," Lechleiter told a crowd at the Economic Club of Indiana. "We're still a proud, Indiana-based company, but folks, this is not your grandfather's Lilly. It can't be anymore."

Lechleiter also ruled out major acquisitions, but opened the door wider to new development pacts with other companies. And biotech drugs will be Lilly's preferred choice from now on.

- read the AP report

Deadline clock running on Lilly's next big blockbuster

John Carroll — Mon, 22 Sep 2008 11:51:16 -0400

One of the biggest moves in biopharma this week will turn on the FDA's decision on prasugrel, a blood-clot drug advanced by Eli Lily and Daiichi Sankyo. Analysts pegged the decision as one of the biggest in quite some time for Lilly, which could push its stock up or down by as much as 10 percent once the agency makes its ruling by the September 26 deadline.

With no advisory guidance to work with, though, the analysts are somewhat mystified whether prasugrel's mixed data--demonstrating efficacy for heart ailments but raising worries about bleeding--will win an approval or not. The agency has been tougher to convince recently, as it grows more wary of potential drug safety fiascos. If prasugrel does get a green light, the drug is a likely blockbuster on the retail drug market.

"It's hard to call this one," Les Funtleyder, a drug analyst with Miller Tabak & Co., told the Star-Tribune. "The FDA is very cautious these days, and rightfully so. It has taken a very strict view of what it will approve."

- read the report from the Indianapolis Star-Tribune

ALSO: GlaxoSmithKline says that the FDA is still reviewing its clotting drug Promacta. Report

BioMS wins $10M milestone on pivotal trial progress

John Carroll — Thu, 14 Aug 2008 11:13:04 -0400

According to BioMS Medical, an independent monitoring board has recommended that a phase II/III study of dirucotide (MBP8298) in patients with secondary progressive MS should continue to completion. And that milestone is worth a $10 million payment from Eli Lilly, which is partnered on the project.

The interim analysis assessed the likelihood of the study reaching its primary endpoint in patients with a particular immune response genes. The DSMB analysis also included a scheduled review of safety information.

- check out the BioMS release

Covance inks $1.6B deal with Lilly

Maureen Martino — Wed, 06 Aug 2008 10:34:40 -0400

The CRO Covance and Eli Lilly have signed an agreement that they say will transform Lilly's R&D model. Covance is buying Lilly's Greenfield, Indiana early drug development campus for $50 million and will offer employment to about 260 Lilly employees. Covance also signed a ten-year, $1.6 billion contract to provide Lilly drug development services. According to a statement, Covance will take responsibility for Lilly's non-GLP toxicology, in vivo pharmacology, quality control laboratory, and imaging services. The deal also includes a committed level of clinical pharmacology, central laboratory, GLP toxicology studies, and clinical Phase II-IV services.

Lilly says the move will help the company control the ever-growing cost of drug development. "Covance has proven they can help accelerate drug development timelines and improve efficiencies with Lilly, which will enable us to further focus on our core competencies..." said John Lechleiter (photo), Eli Lilly CEO.

A recent report found that CROs are playing a growing role helping biotech companies develop early-stage therapeutics. Over the past five years the global CRO industry has seen their revenue share from biotech companies grow from 21 percent to 30 percent. "Today's announcement represents an innovative approach to the R&D productivity challenges our pharmaceutical clients are facing," said Joe Herring, Covance Chairman and CEO.

- here's the release on the deal
- read this Forbes article for more

ALSO: The rest of Wall Street (except biotech) may be suffering, but according to the Motley Fool, CRO stock is hot. Big Pharma and small biotech's outsourcing initiatives have been great for CROs, and Covance, Parexel, ICON, Charles River and WuXi PharmaTech have sustained impressive growth over the past year. Report

Lilly says no higher offer for SGX

John Carroll — Mon, 04 Aug 2008 12:15:26 -0400

Eli Lilly says it won't be sweetening its offer for SGX Pharmaceuticals. The company says its bid of $3 a share, which had doubled the stock's value, was its best and final offer. Shareholders vote August 20. Report

Entelos inks deal with Lilly

John Carroll — Thu, 10 Jul 2008 11:55:14 -0400

Shares of the UK's Entelos surged after the company reported a licensing pact with Eli Lilly. The pact covers access to Entelos' database of 630 drug profiles, which is used to test an experimental therapy's safety and toxicity. Report