Shares of ImClone Systems (NSDQ: IMCL [1]) are skyrocketing in pre-market action, trading up over 40% to around $66 per share on word of a $60 per share all-cash buyout offer by Bristol-Myers (NYSE: BMY [2]), which is its partner for EGFR cancer therapy [3] Erbitux. The market is anticipating a higher bid for ImClone as it is trading about 10% above the buyout offer. This deal follows a spate of biotech deals [4] in recent times, including Roche's buyout offer for its remaining stake in Genetech (NYSE: DNA [5]). The accompanying chart displays the performance of ImClone, Bristol-Myers, and the iShares Nasdaq Biotech ETF (NYSE: IBB [6]) over the past year.
