BMS submits letter to ImClone

Bristol-Myers Squibb (BMS) has sent a letter to the board of directors of ImClone Systems regarding its offer to take over the company.

In the correspondence, the company expressed its disappointment with the decision of the special committee of ImClone to unilaterally reject is all-cash offer for the firm without discussing its merits with BMS and its advisers.

BMS noted that while the preliminary proposal received by ImClone from an unnamed party is subject to due diligence, its own offer is not has been approved by its board of directors has been fully disclosed to its stockholders.

The firm added that it holds the exclusive long-term marketing rights to Erbitux (cetuximab), IMC-11F8 and related compounds and has no intention of modifying these rights.

“ImClone also should understand that our offer is for the entire company and any potential restructuring of the company could severely jeopardize ImClone’s value and deprive ImClone?s stockholders of the benefits of our offer,” wrote James M Cornelius, chairman and chief executive officer of BMS.

He added that the company looks forward to directly engaging with the financial and legal advisers of ImClone to discuss the merits of its offer to acquire the 83 per cent of the firm it does not yet own.

Earlier this month, BMS and ImClone announced positive results of a clinical trial of Erbitux as a treatment for patients with recurrent or metastatic head and neck cancer.