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Health Winners & Losers: ImClone

Biotech stocks dropped as the markets plummeted at the start of the week, though some stock success stories broke through.

The Nasdaq and Amex biotechnology indices were down 5.3% and 4.9%, respectively. The Nasdaq global biotechnology index was off by 5.6%.

The only stock in the green on the Amex index was ImClone Systems (IMCL), which tacked on $1.75, or 2.7%, to $6.71 after Eli Lilly (LLY - Get Report) confirmed that it bid $70 a share or roughly $6.1 billion. Eli Lilly said the offer represents a premium of 51% to ImClone's closing stock price on July 30, the day before Bristol-Myers Squibb's (BMY - Get Report) acquisition offer for ImClone was made public.

Meanwhile, Bristol-Myers Squibb, which had launched a hostile tender for $62 a share, indicated it would not raise its offer. But it also isn't walking away empty-handed. The company said it owns roughly 14.4 million shares, or 16.6%, of ImClone. Considering that, the transaction is worth about $1 billion in cash for Bristol-Myers.

Eli Lilly shares were down 5.4% to $39.16. Meanwhile, Bristol-Myers shares gave up 4.5% to $19.51.

Turning to study results, the wait for interim data from Dendreon (DNDN) is over. Dendreon shares soared $2.67, or 52%, to $7.87, after the company said prostate cancer vaccine Provenge had a 20% reduction in the risk of death at the interim analysis. The FDA required a 22% reduction in order to grant approval based on these mid-study data, so the trial will continue, with investors waiting for a final readout in 2009.
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DNDN $0.06 -6.02%
SLXP $172.81 0.09%
IMCL $0.13 0.00%
BMY $70.78 0.00%
LLY $74.87 0.00%


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DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

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