ImClone Chief Quits, Brother to Take Post

ImClone Systems Inc., whose stock had tumbled to a three-year low after failing to get its highly touted cancer drug cleared by federal regulators, said Samuel Waksal has resigned as chief executive and president.

“In light of recent events and the distractions they have caused, I am withdrawing myself from the daily operation of the company in the confidence that ImClone Systems will be able to maintain its focus on the advancement of our clinical development and research programs,” Waksal said.

The biotechnology company named Waksal’s brother, Harlan Waksal, to replace him. Harlan Waskal co-founded the firm with his brother in 1985 and most recently served as chief operating officer.

ImClone’s stock had flirted with its all-time high of $78.75 last year when Bristol-Myers Squibb Co. agreed to pay ImClone nearly $2 billion for rights to the drug--which was expected to reach the market in mid-2003.

But the Food and Drug Administration rejected the Erbitux application late last year, sending ImClone’s stock down as the firms attempt to provide sufficient data for the Food and Drug Administration. The New York-based company’s shares closed up 78 cents at $10.90 on Nasdaq, before Waksal’s departure was announced.

The plan to get Erbitux to market basically returned to square one this week, as ImClone and New York-based Bristol-Myers start new clinical trials of the drug.