Lilly had been competing with fellow US major Bristol-Myers Squibb, which co-markets Erbitux with ImClone and Germany’s Merck KGaA. Lilly acquired 85,401,945 ImClone shares for $70 each, giving it a 95.5 per cent stake.
While both Lilly CEO John Lechleiter and ImClone chief John Johnson, who will remain as head of the company, were upbeat about the deal the market reaction was more muted. Fitch's Rating Service for example downgraded Lilly citing the debt the drug maker needs for the acquisition as a concern.
Lilly share price increased $1.73, or 5.7 per cent, to $32.16 on the day the deal was completed.
