ImClone up for sale as it returns to profit

Along with announcing fourth-quarter and full-year 2005 results, troubled US biotechnology firm ImClone says it has hired financial advisor Lazard to look at the possible sale or merger of the company, which is currently thought to be worth in the region of $3.0 billion.

The most likely contender to acquire the firm is Bristol-Myers Squibb, say observers, pointing out that it already has a strong collaboration with ImClone on the colorectal cancer drug Erbitux (cetuximab). However, others suggest that this option has been explored with B-MS but no agreement was reached, hence the open offer.

Analysts quoted by the Wall Street Journal have said they believe ImClone will have difficulty in finding a buyer. Gene Mack of HSBC Securities told the newspaper that the firm is "way too expensive," and could soon be facing competition for Erbitux from Amgen's panitumumab, which has yet to receive marketing approval but could have advantages.