In a regulatory filing this morning, Bristol-Myers Squibb announced it has offered to buy the 83% of ImClone it doesn’t already own for an all cash, $60/share or $4.5B. This offer represented a 30% premium over yesterday’s close but already in premarket trading, ImClone has hit $65/share.
I’ve been trying to figure BMS out for a few months now and this decision doesn’t solidify anything. Not that it isn’t a good business move (I think it is), I just wonder whether all these recent moves (e.g.; shedding non-core assets like Lantheus imaging and ConvaTech, acquiring Kosan and KAI-9803) were made to keep the company independent or as fodder for a merger.
I’m going to stick to my guns and say that BMS is fishing for a merger with a large Euro Pharma (read: GlaxoSmithKline, Sanofi or AstraZeneca). The acquisition of ImClone gives BMS full control over Erbitux ($1.3B in 2007 sales) and may be a move to consolidate major partnership to make the company a more attractive merger target.
Theoretically Related Posts
Eben is a highly caffeinated business development associate at a small, cash sensitive pharmaceutical company somewhere in Massachusetts. He enjoys cliche-less banter, compartmentalization, non-equilibrium thermodynamics and NPV analysis. Agree or disagree with what he's posted? He encourages comments.
If one were so inclined, one could follow him at any of these fine web 2.0 establishments:
Feel free to leave a comment below. Eben loves comments. You may also subscribe to comments through this RSS Comments feed or trackback here.
Add New Comment
Thanks. Your comment is awaiting approval by a moderator.
Do you already have an account? Log in and claim this comment.
Add New Comment
Trackbacks
(Trackback URL)