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Eli Lilly completes ImClone buyout

Drug developer Eli Lilly and Co. said Monday that it has completed its $6 billion acquisition of ImClone Systems Inc. — the company's biggest buyout in the biotechnology industry.
/ Source: The Associated Press

Drug developer Eli Lilly and Co. said Monday that it has completed its $6 billion acquisition of ImClone Systems Inc. — the company's biggest buyout in the biotechnology industry.

Eli Lilly announced the deal in October. Its bid topped two prior offers from Bristol-Myers Squibb Co., which is ImClone's partner on the blockbuster drug Erbitux.

On Friday, when Indianapolis-based Eli Lilly bought about 85.4 million shares of New York-based ImClone at $70-per-share, the deal represented more than 95 percent of the outstanding stock. On Monday, the company completed the short-form merger, converting all the remaining shares of ImClone into the right to receive $70 per share in cash.

With the buyout, Indianapolis-based Eli Lilly adds the blockbuster colon and head and neck cancer drug Erbitux to its list of products. Eli Lilly, which sells a range of treatments from Byetta for diabetes to Cymbalta for depression, has been bulking up its biotechnology capabilities along with several other large pharmaceutical companies.

Eli Lilly already gets about a third of its annual revenue from biotechnology drugs, which are developed using living cells instead of chemical compounds. The company has already invested $1 billion into a biotech center in Indianapolis, while building a biotech facility in Ireland.