The Mysterious Stranger Revealed: Eli Lilly Bids $6.1 Billion for ImClone
Carl Icahn wasn’t bluffing—there really was another company conducting due diligence on ImClone. And, true to Mr. Icahn’s word, Eli Lilly finished its due diligence late Wednesday and announced today that it will bid $6.1 billion or $70 per share to purchase ImClone. Mr. Icahn has steadfastly insisted that $70 per share was his magic number and that he wouldn’t sell the company to anyone for less than that. While I have been critical of Mr. Icahn in the past, I have to tip my hat to his negotiating skills and his ability to seal a deal.
Lilly’s bid places enormous pressure on Bristol-Myers Squibb to offer considerably more than $70 per share to prevent Eli Lilly from acquiring ImClone. Given BMS’s tenuous status as an independent pharmaceutical company, it cannot afford to lose its share of the $1.3 billion in sales that Erbitux generates annually. Further, BMS is trying to reinvent itself as “next generation biopharma company” using Erbitux as its flagship product. That said, BMS’s future may hinge on its ability to purchase ImClone— something that it ought to have done years ago to avoid the bidding war with Lilly that is about to ensue.
Stay tuned for the next installment of “As the deal turns.”
Until next time...
Good Luck and Good Job Hunting!!!!!!!!
hi, i just completed my masters degree in Bioinformatics. Is there any need of bioinformatics in Pharma, as im very intersted to get a job in Pharma. Plz help me..
thnx..
Aman