The strategic review, conducted by the board in conjunction with the company’s financial advisors and management, was initiated in January and included the evaluation of a number of alternatives.
In reaching its decision, the board noted that ImClone possessed a number of significant near- and long-term value drivers, including improving revenue and earnings performance; increasing sales of Erbitux in its approved indications, a successful launch in head and neck cancer and increased market penetration in colorectal cancer; the prospects for important clinical trial results toward the end of this year and beginning of 2007; and significant potential for the company’s pipeline product candidates.
“The board concluded that the alternatives available, including bids received for the acquisition of the company, did not match the value potential of ImClone Systems as an independent company,” commented Joseph Fischer, interim CEO of ImClone.
In focusing on remaining independent, ImClone’s board will now renew its previously announced search for a permanent CEO. Mr Fischer has agreed to continue running the company and remain interim CEO during the search process.