Lilly announced last week that it would buy ImClone for about $6.5 billion, not subject to any financing conditions. The price represents a premium of 51% to ImClone's closing stock price of July 30, the day before Bristol-Myers Squibb's (BMY) offer was made public.
ImClone's board unanimously approved Lilly's proposal and recommended shareholders tender their shares in the offer. Unless extended, the tender and any withdrawal rights to which ImClone's shareholders might be entitled expire at midnight EST Nov. 20.
When the transaction is complete, ImClone will become a wholly owned subsidiary of Lilly. ImClone is best known for cancer drug Erbitux, which is currently approved for colon cancer and head and neck cancer in the U.S. It has a pipeline of five cancer drugs in early- and mid-stage clinical trials.Bristol-Myers, which previously bid $62 a share for the cancer drug company, stands to gain about $1 billion for its roughly 14.4 million shares, or 16.6% of ImClone, through Lilly's acquisition. ImClone shares closed at $67 on Monday. Eli Lilly closed at $35.86.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV