WSJ - Imclone continues negotiations to sell itself for ~$6.1B
ImClone Systems Inc. is expected to announce on Monday that it is continuing talks to sell itself to a major pharmaceutical concern for a price in the range of $6.1 billion, according to people familiar with the matter.
The biotech company, which last week rejected an unsolicited offer from Bristol-Myers Squibb Co. to acquire it for $5.4 billion, or $62 per share, is expected to announce a deadline by which it hopes to have a deal with its other suitor. The two sides remain in "deep discussions" and believe they can reach a resolution within days, the people said.
ImClone, best known for its Erbitux brand cancer drug, said previously that it expected its unnamed suitor to complete a review of its books by Sept. 28. ImClone has refused to identify the company it has been holding talks with but speculation has swirled around Pfizer Inc., which has declined to comment on the matter.
One person involved in the discussions said that more than one company had expressed interest in exploring a transaction with ImClone following Bristol's unsolicited July bid. These parties included both Pfizer and Eli Lilly & Co., the person said. Eli Lilly declined to comment.
Many observers view Bristol as the likely buyer for ImClone because it already owns roughly 17% of the company and holds the U.S. marketing rights for Erbitux.
Last week, Bristol increased its original $60 per share bid to $62 and hinted it was prepared to make its pursuit of ImClone hostile by pursuing the ouster of its board. ImClone Chairman Carl Icahn called the revised offer "absurd" and mocked Bristol Chairman and Chief Executive James M. Cornelius for making it.
"If you wish to make your attorneys wealthier, I can show you more productive ways to do so," Mr. Icahn wrote in an open letter. "Or, if you simply want publicity, I can also help you in that regard without your having to make unnecessary expenditures." The market continues to anticipate a higher offer than the one Bristol has put on the table. ImClone's shares closed on Friday at $63.38 per share.
—Shirley S. Wang contributed to this article.
Write to Matthew Karnitschnig at matthew.karnitschnig@wsj.com
