IMCL
IMCL just hit $35 today. Does anyone know why BMY cannot acquire a controlling stake in IMCL in excess of 19.9% prior to September 19, 2006? Is it a contractual thing or a tax free transacation thing?
Thanks in advance,
10nis
10. Will ImClone be acquired? Amgen's proposed acquisition of its partner, Abgenix, has increased speculation that Bristol-Myers Squibb (BMY), ImClone's partner on Erbitux, may acquire ImClone. Based on the agreement on Erbitux, BMY is not allowed to acquire a controlling stake in Imclone in excess of 19.9% prior to September 19, 2006, subject to certain exceptions. As of 3/15/05, BMY holds the original 14.4MM shares acquired in 10/01, or 17.2% of shares outstanding. If ImClone were acquired by a third party, we believe terms on the Erbitux agreement will stand, that is, BMY will continue to pay royalties on net sales in North America of 39%. BMY also reimburses ImClone for a portion of royalty fees that ImClone pays to third parties based on North American sales. The agreement also stipulates that BMY pays 100% of the cost of Phase 1-3 clinical trials in North America. Phase 4 trial expenses are shared equally.
