Lilly Raises Its Bid for Icos to $2.3 Billion

Eli Lilly and Co. increased its bid for Icos 6% from $2.1 billion to $2.3 billion after a complaints from at least one Icos shareholder that the initial bid was not high enough. The Indianapolis-based drug manufacturer raised its offer from $32 a share to $34 after major Icos shareholder, HealthCor, argued that the company was worth over $40 a share. However, Lilly calls its latest bid its "best and final offer." The two companies have a joint venture in Cialis, a drug which treats erectile dysfunction. Lilly believes that the acquisition will cut costs. "We are confident that Icos shareholders will recognize the substantial value and the certainty that Lilly is offering," said Sidney Taurel, Lilly's CEO. Shares of Icos rose 47 cents to $33.82 in mid-morning trading on Nasdaq. Lilly's shares dropped 79 cents, or 1.4 percent, to $53.77 on the New York Stock Exchange.
• Sources: Reuters, New York Times, TheStreet.com,
• Related commentary: Eli Lilly ICOS Buyout Is Not Arm's Length, ICOS Shareholders to Board: Eli Lilly Bid Is at a Discount, Not a Premium, Wall Street Unhappy with Lilly's Forecast for 2007,
• Potentially impacted stocks and ETFs: Eli Lilly (LLY), ICOS Corp. (ICOS). Competitors: Merck & Co. (MRK), Pfizer (PFE), GlaxoSmithKline (GSK), Bristol Myers Squibb (BMY), Wyeth (WYE), Schering-Plough Corporation (SGP). ETFs: iShares Dow Jones US Pharmaceutical Indx (IHE), Pharmaceutical HOLDRS (PPH), SPDR Pharmaceuticals (XPH), Vanguard Health Care (VHT)

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Comments

[Daniel Haszard:]

When it's all said and done $2.3 billion could be the cost of Lilly's zyprexa off label promotion scandal?
Daniel Haszard Lilly investor

2006 Dec 19 10:11 AM