ImClone reviews strategic alternatives, decides to remain independent

By E. Janene Geiss

Philadelphia, Aug. 10 - ImClone Systems Inc. said Thursday that its board of directors has completed a review of the company's strategic alternatives and has decided the company should remain independent.

The strategic review, conducted by the board in conjunction with the company's financial advisers and management, was begun in January and included the evaluation of alternatives including a merger, sale or strategic alliance, officials said in a company news release.

In reaching its decision, the board noted that the company 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," Joseph L. Fischer, interim chief executive officer, said in the release.

In focusing on remaining independent, the board said it will renew its previously announced search for a permanent chief executive officer.

ImClone is a New York City biopharmaceutical company.

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