Bristol Myers Squibb

ImClone rejects BMS's higher bid

Christe Bruderlin-Nelson — Wed, 24 Sep 2008 04:16:00 -0400

The only Bristol-Myers Squibb representative on the ImClone's board of directors, John Celentano, resigned in the wake of what many are now calling a hostile takeover attempt by Bristol-Myers.

But that isn't the biggest news of the day.

The big news is that Carl Icahn sent (yet another) snarky letter to James Cornelius at Bristol-Myers yesterday, essentially telling him that the company's latest offer--made yesterday--is ridiculous. And in true Icahn fashion, he didn't mince words.

The new offer was an increase of $2 per share over the original $60-per-share offer made in July, but does not come close to the secret offer Icahn claims to have in his back pocket for $70 per share. The supposed secret lover has until Sunday to complete its review of the biotech firm and seal the deal, said Icahn. "In light of these facts," he said in a letter to Cornelius, "your hostile tender of $62, at this time, seems absurd."

- check out Icahn's letter
- see the story at Forbes

Rumor mill: BMS positioning itself for sale

Tracy Staton — Mon, 30 Jun 2008 10:28:15 -0400

Speculation that Bristol-Myers Squibb might be a takeover target--that's old news. Informed speculation based on certain strategic moves BMS has made recently--now that's worth passing on. Tim Anderson, the Sanford Bernstein analyst, says he believes Bristol-Myers is actively entertaining the idea of selling itself. In a recent note to investors, Anderson ticked off his evidence. Two key patents expire in 2012, for Avapro and Plavix, and the same year, BMS loses U.S. rights to Abilify. But its pipeline is promising, and it has the second-smallest market cap among big drugmakers.

Additionally, Anderson notes, CEO Jim Cornelius recently bought 100,000 shares; is this a "calculated bet on the future of the company?" Its new CFO is an ex-Goldman Sachs investment banker. And the company recently announced plans to partially spin off its Mead Johnson nutritionals unit, which establishes fair value for that business in case any potential buyer wanted to keep or sell it.

This is circumstantial evidence to be sure. But rest assured that Anderson will keep his eyes peeled for more--so we should all keep an eye on him.

- read the story at Pharmalot

Setback for Lilly, gain for Plavix?

Tracy Staton — Tue, 24 Jun 2008 09:16:20 -0400

When FDA delayed its decision on Eli Lilly's clot-buster prasugrel, a.k.a. Effient, it sliced at least three months off the time Lilly might have to win market share from the commonly used blood thinner Plavix. Doing so quickly is crucial, because Bristol-Myers Squibb and Sanofi-Aventis' Plavix goes off patent by 2011--and cheap generic versions are likely to drain away even more of the market. Report