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Bristol-Meyers Squibb vs. Imclone: Icahn Stirs Up the Pot

Now, there is a new "genius" who knows what is good for ImClone shareholders and understands all legal aspects of Bristol/ImClone commercial agreements.

Merck KGaA, the other ImClone Erbitux marketing partner, also thought that they had rights to the second generation of EGVr-drugs. Unfortunately for them, the binding arbitration concluded that Merck KGaA has absolutely no rights/claims to 11F8.

At best, Bristol has very weak/marginal claims to ImClone's 11F8.

Furthermore, yes indeed, 11F8 falls under the scope of the commercial agreements since its is a competing to Erbitux drug. The same was true for Merck/ImClone agreement. However, it does not mean Bristol has any rights to 11F8.

Why? The Bristol/ImClone agreement is only for N. America (the USA and Canada), also known as "the Territory". The agreement "competing drugs" clause will expire in less than one week on Sep. 19, 2008. Until now, all 11F8 development activities were conducted in Europe or OUTSIDE the Bristol/ImClone commercial agreement Territory. Consequently, Bristol has no rights/claims to 11F8.

The same is true to ALL other Imclone pipeline candidates since all Bristol rights to them had expired 2 years ago. Note that Bristol does not make any claims to other ImClone drug candidates.

As for "the best" of ImClone shareholders, I can assure the author and him-alike that ImClone shareholders do not need Bristol $60-proposal.

ImClone is a highly successful and profitable biotechnology company with a lot of cash and outstanding new drug pipeline candidates. Success of any one out of 5 pipeline candidates presently in Phase II & III clinical trials, ImClone has all rights to, will propel ImClone market cap well above $10-12B in just 1 -2 years. Consequently, ImClone shareholders are ready to wait for a real payout day.

Presently, ImClone is highly undervalued by the Wall-Street. It should not be a surprise to anyone taking into account the Street latest poor performances when only the US Treasury and FED can keep major Wall-Street firms out of bankruptcies with endless money infusions.

As for the shareholders who think that Bristol's $60-offer is good, these shareholders had/have plenty of opportunities to sell ImClone shares at an open market well above $60 at any time.