Eli Lilly confirmed as mystery bidder for ImClone with $6.5B offer

Strongly outbidding Bristol-Myers Squibb in its attempt to gain full control of US biotechnology firm ImClone, fellow USA-based drug major Eli Lilly has confirmed that it is the so-called "mystery bidder" for the company, making an offer of $70 per share, or a total of some $6.5 billion (Marketletters passim). Both ImClone and Lilly's boards have approved the deal, as has the former's chairman Carl Icahn. who has a 14% holding in the firm. The acquisition would have a beneficial impact on Lilly's oncology business, where ImClone's expertise - and existing product - lies.

B-MS has been trying to buy ImClone since September, initially at $60 a share and more recently sweetening this to $62 (Marketletter September 29), amid claims by Mr Icahn that the firm had already received an offer of $70 from an unidentified large pharmaceutical company. The US drug major, which currently owns 17% of the biotechnology firm, is one of its marketing partners (together with Germany's Merck KGaA) for the blockbuster cancer drug Erbitux (cetuximab), which had global annual sales of some $1.3 billion in 2007.

Will create leading oncology franchise