BMS strengthens partnership with ImClone Systems acquisition

Biopharma company Bristol-Myers Squibb has outlined plans to acquire a global leader in the development and commercialisation of novel antibodies to treat cancer.

BMS, which currently owns approximately 17% of all outstanding shares of ImClone Systems Incorporated, plans to buy the business for $60 per share in cash, or a total payment of approximately $4.5bn.

The proposed acquisition represents "an evolutionary development in the two companies" seven-year relationship, says BMS chairman and chief executive officer James Cornelius.

"Bristol-Myers Squibb is the natural partner for ImClone as we possess the knowledge base and resources to advance the company's growth over the long-term, not only with respect to ERBITUX, the important cancer therapy we jointly commercialize, but also in terms of developing ImClone's pipeline assets. ERBITUX (cetuximab) is indicated for use in the treatment of patients with metastatic colorectal cancer and for use in the treatment of squamous cell carcinoma of the head and neck. Bristol-Myers Squibb and ImClone have been engaged in the co-development and co-commercialisation of ERBITUX in the U.S. and Canada under an agreement entered into in September 2001.

BSM and ImClone have also been engaged in the co-development of ERBITUX in Japan with Merck KGaA since December 2004. In October 2007, the three companies amended this agreement to provide for co-commercialisation of ERBITUX in Japan. The companies received marketing approval for ERBITUX in Japan on 16 July 2008, for use in combination with irinotecan to treat unresectable advanced or recurrent colorectal cancer.

The latest acquisition is expected to contribute to our financial performance in the 2012-2013 timeframe as well as drive growth beyond 2013.