Eli Lilly to buy ImClone for more than $6 billion

The drugmaker Eli Lilly & Co. said Monday it has agreed to buy biotechnology company ImClone Systems Inc. for more than $6 billion in a deal that would expand its pipeline of cancer treatments.

New York-based ImClone had previously rejected as too low two lower-priced takeover offers from Bristol-Myers Squibb Co., its marketing partner for the cancer drug Erbitux.
Indianapolis-based Lilly said it will pay $70 per share in cash for ImClone, up 7.7 percent from Friday’s close and more than 50 percent over its price in July before Bristol-Myers made its first bid.

With about 87 million shares outstanding as of Aug. 1, that would amount to nearly $6.1 billion. Lilly said in its news release that the transaction is worth $6.5 billion. Both boards have approved and recommended that ImClone stockholders tender their shares.

 -From Associated Press reports