Wes congrats to you,IMCL Breakout today--here's is the news that got it running--
ImClone CEO Says He's Rejected Several Offers to Sell Company
New York, Sept. 2 (Bloomberg) -- ImClone Systems Inc. Chief Executive Samuel Waksal said he's
rejected several offers to sell his fledgling biotech company because he believes it will be worth far
more after launching its first drug, a cancer product.
ImClone said it hopes to file for U.S. approval of its most advanced product candidate, an
anti-cancer compound dubbed C225, in the second quarter of next year. The drug is designed to
arrest development of cancer by blocking a substance dubbed Epidermal Growth Factor receptor,
which helps solid tumors grow.
Biotechnology companies are in the midst of the biggest wave of consolidation since the industry
was founded in the 1970s. Large drugmakers and big biotech companies are hoping to keep revenue
growing by acquiring smaller companies with drugs that are either already on the market or close to
approval. ``We've been offered a lot of firm deals,' Waksal said in an interview. ``There's no amount
of money that somebody could pay us right now that would give us the value for shareholders that
we could get if we launched this drug. What we do after that is up for discussion.'
He declined to say which companies have offered to buy ImClone or how much they bid.
Waksal, a physician who helped found ImClone and has been its chief executive for the past 14
years, is betting that ImClone's market value will rise as the company makes progress in bringing
C225 to market. The stock has soared more than fivefold over the past year as the company
reported success in late-stage clinical trials of C225.
The New York-based company has retained full rights to market C225 in the U.S., the world's
biggest drug market. That means ImClone will get a bigger chunk of profits from the product than is
typical for biotechnology companies.
Lots of Options
Biotech companies have generally been forced to team up with experienced pharmaceutical
companies to market their first drug in the U.S. -- both to acquire the expertise needed to
manufacture and launch pharmaceuticals as well as to obtain the hundreds of millions of dollars it
takes to bring a new drug to market. ``Once our drug is on the market, I think the valuation will be
reflected in our stock price, which will be a dramatic increase over where we are now,' Waksal said.
``Then there are lots of options. We will look at those options then.'
ImClone has enough cash to fund development of the drug through its approval, Waksal said.
The company had $42.5 million in cash as of June 30. While the company will spend some $42
million this year, that will be offset by some $30 million in payments from development partners
and other revenue, he said.
ImClone said it plans to file with the U.S. Food and Drug Administration next year seeking approval
to use C225 to treat head and neck cancer. It may seek approval at the same time to market the drug
for colo-rectal cancer, depending on the results of an ongoing trial for that disease, Waksal said.
ImClone yesterday rose 15/16 to 29 15/16.
German drugmaker Merck KgaA has rights to market the drug outside of North America.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min. |
