ImClone Systems Inc. sold half of its share in privately held CadusPharmaceutical Corp. for $3 million, to an entity owned by privateinvestor Carl Icahn, the company said Thursday.
ImClone, of New York spun off Cadus in March 1992, and ownedabout 27 percent of the company, which signed a deal with Bristol-Myers Squibb Co. worth up to $45 million in July. Icahn HoldingCorp. was one of the early investors in New York-based Cadus. Thepurchase gives Icahn just over 25 percent ownership in Cadus, anImClone official said.
ImClone, which is developing drugs for cancer, laid off 35 percent ofits staff in August, and now has about 85 employees. It reported$186,000 in cash and equivalents on Sept. 30. Since then thecompany has completed private placements totaling about $700,000.The company is burning about $1 million per month.
"This [sale of part of Cadus] should last us a few to several months,"Peter Rogalin, ImClone's chief financial officer, told BioWorld."This is just one step in a series of things we'll be doing."
The company's lead product, C225, is in Phase I trials for cancer.ImClone's stock (NASDAQ:IMCL) closed at 75 cents Thursday,down 13 cents per share. _ Jim Shrine
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