Bristol-Myers Squibb welcomes Lilly-ImClone deal
07 Oct 2008
Bristol-Myers Squibb has said it welcomes the agreement which sees Eli Lilly set to buy ImClone Systems for a total of $6.5 billion (£3.7 billion).
Currently the owner of approximately 16.6 per cent of all outstanding ImClone shares, Bristol-Myers Squibb has revealed it is in line to receive around $1 billion in cash as a result of the deal.
The company's chairman and chief executive officer James Cornelius indicated his firm will "work closely" with the "well-respected" Eli Lilly in the development of various compounds.
Furthermore, he said that his company is "pleased" to have contributed to the increased value of ImClone Systems.
Mr Cornelius continued: "We are ... proud to have contributed to this creation of value by providing commercial and R&D support to the company over the course of our relationship, which will continue now with Eli Lilly."
The statement from Bristol-Myers Squibb comes after the earlier announcement from Eli Lilly that it has agreed to purchase ImClone Systems through an all-cash tender offer of $70.00 (£39.97) per share.
The deal depends on at least a majority of ImClone shares being tendered and subsequent clearance from the relevant authorities.