ImClone, BMY in IMC-C225 deal

Bristol-Myers (BMY) will co-develop and co-promote IMCL's IMC-C225 antibody in the U.S., Canada and Japan. BMY will pay IMCL a total of $1 billion in three cash payments for achievement of three milestones: the signing of the agreement, completing the IMC-C225 BLA submission and obtaining marketing approval for the compound.

In addition to the cash payments, BMY will purchase $1 billion of IMCL stock from existing IMCL shareholders for a 20% equity stake in the company. BMY will buy 14.4 million IMCL shares at $70, a 40% premium to IMCL's Tuesday close at $50.01. BMY was advised by Lehman Brothers and IMCL was advised by Morgan Stanley. ...