By Mary Welch

ImClone Systems Inc., which develops treatments for cancer and cancer-related disorders, intends to raise $150 million by selling convertible subordinated notes, the proceeds of which will be used to fund research, development and clinical activities.

The notes will be due 2005.

The New York-based company's lead cancer therapeutic candidate is C225, which acts as a biologically specific inhibitor to an important molecular switch that regulates cell division and propagation. A chimeric monoclonal antibody, it targets the epidermal growth factor receptor, or EGFr, which is overexpressed on cells in more than one-third of all solid tumors. The company is conducting two Phase III trials evaluating C225 in combination with radiotherapy and chemotherapy in patients with advanced squamous cell head and neck carcinoma. It is also in Phase II/III studies for renal cell cancer as well as in several Phase II trials for other indications. ImClone is conducting the trials with partner Merck KGaA, of Darmstadt, Germany.

The company's other late-stage clinical program is an anti-cancer vaccine, BEC2. In May 1998, ImClone and Merck stated a Phase III trial in patients with limited-disease small-cell lung cancer.

Earlier this month, ImClone and SmithKline Beecham plc, of London, entered into a licensing agreement for certain proprietary antigens and related intellectual property owned by ImClone for inclusion in a vaccine against meningitis.

In November, the company netted $94.3 million by selling 3.162 million shares at $32 each. The company had third-quarter revenues of $138,000 and a net loss of $11 million. For the first nine months of 1999, ending Sept. 30, the company's revenues fell 70 percent compared to the first nine months of 1998, to $1 million, and its net loss was $29.2 million. The company had $1.21 million in cash and 28.4 million shares outstanding on Sept. 30.

ImClone's stock (NASDAQ:IMCL) closed Friday at $88, down $5.75.