ImClone

Lilly CEO defends 'risky' ImClone buyout

Maureen Martino — Wed, 15 Oct 2008 11:03:28 -0400

Some analysts are questioning Eli Lilly buyout of ImClone. They're using words like "risky" and "desperate" to describe the $6.5 billion buyout, which will drain Lilly's cash reserves and force the company to take on debt in the midst of a credit crisis. Those concerns contributed to a 24 percent drop in Lilly's stock over the week that the company announced the deal.

But CEO John Lechleiter thinks heading up a Big Pharma company is all about taking risks, and that Lilly needed a bold move if it's going to overcome its current slump. Lilly hasn't launched a new human drug in three years and faces serious patent losses in 2011. The bigger risk, Lechleiter said, would be to do nothing at all. The buyout is part of Lilly's plan to increase its focus on oncology and biotechnology over the coming years. The company currently has only two cancer drugs, but with the ImClone buyout it gained the best-seller Erbitux along with ImClone's pipeline of five other cancer drugs.

Only time will tell if Lilly's risky move will pay off. "This is what we do every day," says Lechleiter. "We place risky bets on our pipeline. This is what our shareholders expect us to do."

- read the Indy Star article

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

ImClone's cancer pipeline big attraction for bidders

John Carroll — Fri, 03 Oct 2008 08:55:08 -0400

Why the bidding war for ImClone, considering that Erbitux has failed to live up to its early billing? BusinessWeek concludes that the answer lies in ImClone's oncology pipeline. After Big Pharma companies turned their backs on cancer development, the biotechs took control of the field. Now Big Pharma wants back in, attracted by the relatively low costs associated with marketing new cancer drugs along with the potential for big returns.

ImClone has been advancing a successor to Erbitux, but the analysts seem to be primarily intrigued by the late-stage IMC-1121B, which works much like Avastin in starving tumors by attacking the blood vessels that feed them. IMC-1121B is in Phase III for breast cancer and in a mid-stage trial for melanoma, kidney and liver cancers.

It all looks very promising, especially if you're looking for a new way to make up for some fading blockbusters.

- read the article from BusinessWeek

ALSO: The Financial Times also notes that pharma's push into the biotech field has stirred rumors that a variety of drug companies could wind up making a play for ImClone. Report

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

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

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

Pharma's biotech buyout spree to continue

John Carroll — Thu, 21 Aug 2008 11:00:05 -0400

Don't look for an end to biotech buyouts anytime soon, says the AP. Quoting a string of experts in the field, the article concludes that there's still a lot of pharma money out there in pursuit of new therapies. And that will continue to drive new buyout deals like the multibillion-dollar offers we've seen recently for Genentech and ImClone.

"There's a fair bit of money in the industry today, almost creating a pent-up capacity to do deals," said Deloitte's Terry Hisey.

Biotech's allure is clear to just about everyone in the market. These new drugs are more complex and don't face near-term generic competition. But with deals focused on pipeline drugs, valuations have to rely on an educated guess about what their commercial value would be if approved.

--read the AP story

ImClone asks JPMorgan for deal advice

Maureen Martino — Fri, 15 Aug 2008 10:35:33 -0400

ImClone may have rejected Bristol-Myers Squibb's buyout advances so far, but now the company is hiring a financial adviser to help it study the offer--and analyze its own internal proposal to split itself into two businesses. Report

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

C&L: PDL BioPharma's L. Patrick Gage resigns

Wed, 04 Jun 2008 06:59:52 -0400

PDL BioPharma director and interim Chief Executive L. Patrick Gage resigned due to differences among the board about prioritizing company goals.

Histogenics has named F. Ken Andrews president and CEO. Andrews is a former vice president of marketing and sales of the tissue repair division of Genzyme.

Epix Pharmaceuticals announced the resignation of Dr. Andrew Uprichard from his position as president and head of research and development.

Alexza Pharmaceuticals announced that Jeffrey S. Williams has rejoined the company in a part-time position as president, Alexza Singapore, a wholly owned subsidiary of Alexza.

Biogen Idec has promoted Hans Peter Hasler to chief operating officer. He had been executive vice president, global neurology.

Etrials Worldwide said James W. Clark, Jr. has resigned his position as secretary, treasurer and chief financial officer.

Genmab AS said it has appointed David Eatwell as new chief financial officer of the group.

Amazon Biotech announced that Dr. Michael Silver has been appointed as the company's new scientific director.

ImClone Systems has appointed Bernhard Ehmer, M.D. as senior vice president and managing director, international operations.

Adolor Corporation has promoted Lee Techner, DPM to vice president, medical affairs and medical director.

MAP Pharmaceuticals has appointed Marco F. Rosa to the newly created position of vice president of human resources.

Stem Cell Therapeutics Corp. has appointed Thomas Franck as vice president of commercial planning.

BioChemics has named Dr. R. Rox Anderson, professor at Harvard Medical School, as a member of the company's Scientific Advisory Board.

DermTech announced that Herbert A. Fritsche, Ph.D., has joined DermTech's Scientific Advisory Board.

Avantogen Ltd welcomed Professor Ian Frazer to the Scientific Advisory Board of Hawaii Biotech Inc.

Provectus Pharmaceuticals has announced that Kelly M. McMasters MD, PhD, has agreed to serve as a member of the corporate board of directors. Additionally, Dr. McMasters will head the scientific advisory board.

TOPIGEN Pharmaceuticals has named Jeremy Curnock Cook, MA, to its board of directors.

Trius Therapeutics announced the appointment of Paul Truex to its board of directors.

NanoBio announced the appointment of David M. Stout to its board of directors.

Enzon Pharmaceuticals announced that Dr. Jack Geltosky has been appointed to the company's board of directors

ALSO NOTED: ImClone hires Zuerblis for CFO post; Tekmira plans merger; Argos touts HIV data; and much more...

Mon, 31 Mar 2008 07:59:50 -0400

> ImClone Systems has hired Kenneth Zuerblis as its new chief financial officer. Zuerblis has been CFO at Enzon before his resignation in 2005 for personal reasons. Report

> After posting a $2.6 million loss for last year, Tekmira Pharmaceuticals announced that it will merge with Protiva Biotherapeutics. Release

> Argos Therapeutics says its Phase I trial of AGS-004 for HIV demonstrated positive safety and feasibility data. "Initial data revealed no serious adverse events," said Jean-Pierre Routy, M.D. "Mild adverse events observed were consistent with immune response induction and typical of similar therapies." Release

> Japanese regulators have approved Naglazyme for as Maroteaux-Lamy syndrome. The drug is being developed by AnGes MG and Biomarin Pharmaceuticals. Report

> Business leaders in Arizona are touting a $1.4 billion bond package that would provide funds to expand biomedical research in the state. Story

> Crucell has pushed its rabies monoclonal antibody combination into Phase II, hitting a milestone in its development deal. Report

> Genta announced that the Data Safety Monitoring Board for its Phase III trial of Genasense Injection, its lead oncology product, has recommended that the trial be continued as originally planned after initial review of blinded safety data from the study. Release

> Encorium Group has inked a $1.6 million contract with Protherics for a Phase II trial of its novel immunotherapeutic vaccine, Angiotensin Therapeutic Vaccine for hypertension. Release

> Neurosearch has begun an early-stage trial of NSD-788, an experimental therapy for anxiety and depression. Report

> If Merck and Schering-Plough really expected their Enhance presentation to turn the tide on Vytorin and Zetia, then they were sorely disappointed this weekend. Report

> Some cholesterol med-makers do have reason to rejoice today. AstraZeneca stopped a study of its blockbuster Crestor, saying the pill had already demonstrated clear benefits over placebo. Report

>What's the long-term impact of the heparin scare? It's shattered U.S. claims of "it can't happen here," for one thing. Report

And Finally… A new study links pesticides with Parkinson's disease. Release