ImClone founder Sam Waksal trying to raise $50 million to back new biotech venture

Samuel Waksal, the former chief executive of US biotechnology firm ImClone Systems, who due to an insider trading scandal led t his conviction and imprisonment (as well as that of style guru Martha Stewart) in 2003 and released in 2009, 'is getting back into biotech in a big way,' according to TheStreet, which says it has obtained a confidential fund-raising prospectus showing that Mr Waksal is trying to raise $50 million for a new privately held biopharmaceutical company.

Kadmon I LLC, of which Mr Waksal is managing member, would acquire, develop or license new drugs targeting cancer and infectious diseases, says The Street. Kadmon is also in negotiations to acquire an unidentified drug company to use as its operational base, although binding agreements are not yet in place, according to the prospectus dated February 3.

According to TheStreet, Mr Waksal and his team intend to sell a 50% stake in Kadmon to qualified investors for $50 million, which would value the company at $100 million. The offering could be upsized to as much as $175 million if demand warrants, according to the prospectus.