Icahn Wins Control of ImClone Systems and Company’s Chief Leaves [New York Times]
Summary: Carl Icahn won control of ImClone Systems yesterday, as he was named chairman along with his 14% stake in the company. ImClone's interim CEO has resigned, and at Tuesday's board meeting, three directors in opposition to Icahn agreed to not seek re-election at the next annual meeting in Q1 2007. Icahn and three allied executive directors will lead ImClone until a new CEO 'with ample biotechnology experience' is found. ImClone's lone commercial product, cancer fighting drug Erbitux, will be the focus as Icahn and co. attempt to boost sales, and pressure licensee Bristol-Myers Squibb to increase its marketing efforts. Erbitux faces competition from Amgen's Vectibix, which received approval late last month, and is also 20% cheaper and believed to be safer. ImClone reported considerably stronger y-o-y quarterly earnings yesterday, beating Street estimates and shares of ImClone soared 5.3% to close at $31.00, but are still trading 28% below their 52-week high of $43.08. Note that Icahn said he invested in ImClone in the mid-1990's, buying at $2 per share, and later sold at around $130 per share.
Related links: ImClone Press Releases: Carl Icahn Appointed Chairman, Q3 and 9-months 2006 Financial Results • TradingMarkets.com: ImClone Systems Q3 Profit Soars • Icahn Responds to Imclone: Nobody Asked Me, But I'm Glad They Didn't Sell • Amgen's First Cancer Drug May Spark Price War With ImClone • ImClone Systems: Will It Benefit From a Dose of Carl Icahn? • Carl Icahn Asks Imclone Chairman To Step Down
Potentially impacted stocks and ETFs: ImClone Systems (IMCL), Bristol-Myers Squibb (BMY), Amgen (AMGN)
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