OrbiMed opposed to Eli Lilly offer for SGX Pharmaceuticals

By Lisa Kerner

Charlotte, N.C., July 30 - SGX Pharmaceuticals, Inc. shareholders led by OrbiMed Capital LLC said they do not believe Eli Lilly & Co.'s $3-per-share offer for the company reflects the inherent value of SGX.

It was previously reported that on July 8 Eli Lilly agreed to acquire SGX in a deal valued at approximately $64 million.

OrbiMed may seek to encourage SGX to take action to increase the price per share to be paid in the merger or to remain independent, according to a schedule 13D filed with the Securities and Exchange Commission.

In addition, the investors may contact other shareholders to discuss their views.

OrbiMed and its affiliates beneficially own 3.09 million shares, or 14.48%, of the San Diego biotechnology company.

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