Eli Lilly to acquire ImClone systems

Eli Lilly and ImClone system have announced the directors of both firms have approved a definitive merger agreement between the companies.

Under the terms of the deal, Eli Lilly will acquire ImClone systems in a transaction worth $6.5 billion (3.7 billion pounds).

Eli Lilly will purchase all shares of ImClone in a cash offer of $70 per shares, which represents a 51 per cent premium over the closing price of the stock on July 30th 2008 – the day before an acquisition offer for the firm was made public.

The board of ImClone has recommended this deal to its shareholders, while entities associated with its chairman Carl C Ichan have agreed to tender their 14 per cent shareholding in the firm via the offer.

John C Lechleiter, president and chief executive officer of Eli Lilly, said: “We think very highly of ImClone’s ground-breaking work in oncology, particularly its success with Erbitux – a blockbuster targeted cancer therapy – and its ability to advance promising biotech molecules in its pipeline.”

He added the company is excited about the possibilities of building value for shareholders and improving outcomes for individual patients.

Earlier this week, Eli Lilly announced a licensing and partnership agreement with Deciperha to study B-Raf kinase inhibitors for use in oncology.