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BMY wants Erbitux lead
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February 5, 2002: 7:46 p.m. ET
Bristol-Myers threatens to walk if not granted control of drug approval from ImClone.
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NEW YORK (CNN/Money) - Bristol-Myers Squibb said Tuesday it will abandon its marketing and development deal with ImClone unless the embattled biotech company hands over control of regulatory approval for cancer drug Erbitux.
Bristol-Myers (BMY: up $0.21 to $43.70, Research, Estimates) also wants changes in ImClone's management until Erbitux is approved, better access to ImClone's intellectual property and greater ability to sell the sinking shares of the troubled company.
"If these conditions are accepted, Bristol-Myers Squibb will take the lead in the FDA approval process and other clinical and regulatory matters related to Erbitux," said Peter R. Dolan, chairman and CEO of Bristol-Myers, in a statement.
Bristol-Myers made a $1 billion investment in the company for 20 percent of the stock and the opportunity to co-market and co-develop Erbitux.
But ImClone (IMCL: up $0.48 to $16.98, Research, Estimates) has been hit with a barrage of class-action lawsuits for allegedly making misleading statements about the reasons for the FDA's initial rejection of the colorectal cancer treatment in December.
The biotech company also is now the target of informal federal investigations.
Bristol Myers took $735 million in charges in the fourth quarter to write down the value of the ImClone investment.
ImClone declined to comment on the Bristol-Myers statement. 
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