ImClone Systems
Biotech firm known for developing cancer drug Erbitux and sparking the infamous Martha Stewart insider trading scandal.
- Entries
- 7
- On the record
- 4
- Stories
- 1
- Latest entry
- Nov 24, 2008
The record
ImClone Systems was the company behind the cancer treatment Erbitux. Its record turns on one week in December 2001. According to the SEC, its chief executive, Samuel Waksal, learned on the evening of December 26 that the FDA would issue a Refusal to File letter on December 28 rejecting consideration of ImClone's Biologics License Application for Erbitux, and family members sold ImClone stock before the news was public.
The SEC charged Waksal with insider trading in June 2002. In March 2003, without admitting or denying the allegations, he consented to a partial final judgment that included permanent injunctions, $804,367 in disgorgement and a bar from serving as an officer or director. In October 2003 the SEC amended its complaint to add his father as a defendant over his own sales of ImClone stock.
The company itself ended as an acquisition. Eli Lilly and Company signed a merger agreement on October 6, 2008, and tendered for all ImClone shares at $70.00 each in cash. Lilly completed the tender offer on November 21 and announced on November 24, 2008, that ImClone was a wholly owned subsidiary, with Erbitux described in the release as a blockbuster targeted cancer therapy.
Roles and honours on the record
Every entry, newest first
- Reported
ImClone announced the FDA would not accept its Erbitux application for filing, per the SEC complaint. Martha Stewart prison: 5 months for lying about her ImClone sale
Stories in this file
The record, entry by entry
- 2001-12-26 Filed On the evening of December 26, 2001, chief executive Samuel Waksal learned that the FDA would issue a Refusal to File letter for Erbitux two days later; the SEC alleged he passed the news to family members who sold ImClone stock and tried to sell his own shares before it became public. SEC Litigation Release No. 17559
- 2002-06-12 Filed The SEC filed insider trading charges against former ImClone CEO Samuel Waksal in the U.S. District Court for the Southern District of New York. SEC Litigation Release No. 17559
- 2003-03-11 Ruled Without admitting or denying the allegations, Waksal consented to a partial final judgment covering his attempted stock sale, his December 28, 2001 options trades and sales in a family member's account: permanent injunctions, disgorgement of $804,367 and an officer and director bar. SEC Litigation Release No. 18408
- 2003-10-10 Filed The SEC filed a second amended complaint naming Waksal's father, Jack Waksal, as a defendant, alleging he sold ImClone stock on December 27 and 28, 2001, after being tipped about the FDA decision, and seeking civil penalties against both men. SEC Litigation Release No. 18408
- 2008-10-06 Official ImClone signed a merger agreement with Eli Lilly and Company, under which a Lilly subsidiary began a tender offer for all outstanding ImClone shares at $70.00 per share in cash. Eli Lilly and Company news release
- 2008-11-24 Official Lilly announced it had completed the acquisition, after finishing the cash tender offer on November 21, 2008; ImClone became a wholly owned subsidiary and its chief executive, John Johnson, stayed on. Eli Lilly and Company news release