BMS makes $4.5 billion bid for ImClone Systems

Friday 1 August 2008
Christopher Spillane - Reporter

Bristol-Myers Squibb has made a $4.5 billion cash offer to acquire ImClone Systems – a move which would consolidate the firms' six year relationship. The $60 per share offer represents a 30% premium on ImClone's closing price yesterday.

"The price we are offering represents an extremely attractive opportunity for the shareholders of ImClone to realise today the future value of the company," said BMS's chairman and CEO, James Cornelius, in a letter to ImClone's chairman of the board, Carl Icahn.

In a statement Mr Cornelius, said: "BMS is the natural partner for ImClone as we possess the knowledge base and resources to advance the company's growth over the long-term."

The companies have been collaborating since September 2001, when they agreed a co-development and co-commercialisation deal for Erbitux (cetuximab) in the US and Canada. BMS, which owns around 17% of the US antibodies firm, expects the deal to contribute to its financial performance in 2012-13 and "drive growth beyond 2013".

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