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Predictions on Imclone's Suitors

This is the second article by the same biotech-incompetent author.

Unfortunately, the author is incapable of understanding the ways to value biotechnology companies.

Diamonds and pearls are not valued by pounds and inches but rather by quality and beauty. The same is true for biotech.

The biotech value is in a company portfolio of drugs already available for sale including the presently approved and future indications, the value/potential of its pipeline in development and its patent portfolio.

These are the parameters potential buyer is looking at then they evaluate a potential biotech candidate rather than company's financials and/or its real-estate holdings.

This is a very difficult and complicated process. It is not a secret that the FDA evaluates drug candidates based on clinical trials results rather than on the Wall Street analysts or even the best scientists evaluations.

Back in 2001 then the FDA even refused to accept ImClone lead drug Erbitux for consideration, it appeared that ImClone has no value at all. Shortly from now, the same Erbitux being a bright oncology star is about to become a multi-billion dollar blockbuster drug helping thousands and thousands cancer patients all around world.

ImClone also has an outstanding pipeline of new drugs in developments. Some of these drugs are in the final Phase III development stage. A success of just one of these candidates will potentially double the present ImClone's value.

Consequently, a "secret" ImClone admirer has a lot of difficult work to do. There is no any need for either ImClone, its shareholders or a "secret" ImClone admirer to rush with the decision.

Disclosure: I am an ImClone shareholder. In my opinion, ImClone value is well above $8B.