Pharma BD Deal Intelligence

Eli Lilly and Company / ImClone Systems Incorporated

2008 · Acquisition/Merger · $6.5B · Complete

CALLED IT — OFF BY 11

A durable but unspectacular oncology bolt-on — Erbitux and Cyramza both still sell 15+ years later, but neither became a blockbuster and the $6.5B price was never validated by a matching return.

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The coverage arc

Oct 06, 2008 Bristol-Myers Squibb Neutral

BMS, which co-markets Erbitux in the US, declined to top Lilly's $70/share bid (vs its own $62) and committed to ongoing collaboration with the new owner.

Oct 13, 2008 C&EN (Chemical & Engineering News) Bearish

C&EN headlined 'Lilly to Pay Big for ImClone' — flagging the 51% premium over pre-bid price and 9% drop in Lilly shares on announcement as evidence of Wall…

Source summaries from our enrichment pipeline; follow links for originals.

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Eli Lilly acquired ImClone Systems for $70 per share in cash, approximately $6.5 billion, after Bristol-Myers Squibb (ImClone's existing Erbitux co-marketing partner) declined to match the bid at its own $62-per-share offer. Lilly cited Erbitux and ImClone's broader oncology pipeline as the rationale for what it called one of the leading oncology franchises in the biopharmaceutical industry; the 51% premium drew some Wall Street skepticism, with Lilly shares falling roughly 9% on announcement. The deal closed November 24, 2008.

Did it work? Outcome assessment

A durable but unspectacular oncology bolt-on — Erbitux and Cyramza both still sell 15+ years later, but neither became a blockbuster and the $6.5B price was never validated by a matching return.

Strategic verdict
Partially Achieved

Key facts

Related deals — scored

DealYearValueOutcome
Eli Lilly and Company / ImClone Systems Incorporated (this deal)2008$6.5B61
Eli Lilly and Company / Boehringer Ingelheim GmbH2011$444M89
Eli Lilly and Company / Loxo Oncology, Inc.2019$8.0B88
Eli Lilly and Company / Applied Molecular Evolution Inc.2003$400M88
Eli Lilly and Company / ICOS Corporation2006$2.3B87
Eli Lilly and Company / Novartis Animal Health2014$5.4B70
Eli Lilly and Company / Incyte Corporation2009$755M69

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