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Quick Hits: Eli Lilly Snaps Up Imclone


Brief scrutiny of today's headlines.

Eli Lilly (LLY) will acquire ImClone Systems (IMCL) for $70 per share, or about $6.5 billion in cash.

The price is about 7.7% above Friday's close and about 51% above the stock price in July before Bristol-Myers announced its takeover bid. ImClone had previously rejected two bids by Bristol-Myers Squibb (BMY) as too low.

ImClone, a biotechnology company, will help Eli Lilly expand its line of cancer treatments.

"By bringing together ImClone's and Lilly's marketed oncology products, pipelines, and biotech capabilities, we are taking a very important step forward in addressing the challenges of patent expirations we will face early in the next decade," John C. Lechleiter, Ph.D., Lilly's president and CEO, said in a prepared statement.

ImClone chairman Carl Icahn owns about 14% ImClone stock and has agreed to back the deal.

In a statement, Icahan said Eli Lilly's deal "vindicated" his opposition to a 2006 buyout deal worth $36 a share from an undisclosed company. Icahan became ImClone's chairman in October of that year.
No positions in stocks mentioned.
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