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Eli Lilly To Buy ImClone

Drugmaker says it will buy biotechnology company ImClone for more than $6 billion in a deal that would expand its pipeline of cancer treatments.

NEW YORK (AP) -- The drugmaker Eli Lilly & Co. says it has agreed to buy biotechnology company ImClone Systems Inc. for more than $6 billion in a deal that would expand its pipeline of cancer treatments.

Indianapolis-based Lilly said Monday it will pay $70 per share for ImClone. With about 87 million shares outstanding as of Aug. 1, that would amount to nearly $6.1 billion. Lilly said the transaction is worth $6.5 billion.

New York-based ImClone had previously rejected as too low two takeover offers from Bristol-Myers Squibb Co., its marketing partner for the cancer drug Erbitux. Bristol-Myers made bids of $60 and later of $62 per share.

ImClone says Chairman Carl Icahn, who owns about 14 percent of ImClone stock, has agreed to vote in favor of the Lilly deal.