IMCL's "Erbitux" and LLY's "Alimta" are both lung cancer drugs, but it does not appear that these products compete directly based on the information obtained to this point. Alimta (pemetrexed) is classified as an antifolate primarily used against non-small cell lung cancer mesothelioma. Erbitux (cetuximab), on the other hand, is a monoclonal antibody aimed at reducing metastative (tumor) lung cancer and is expected to compete directly with Genentech's "Avastin".

The primary difference between the two drugs is Alimta is an early-stage treatment, while Erbitux is the latest-stage treatment for lung cancer patients. This will almost certainly be viewed as a vertical combinations in terms of lung cancer treatment and, more importantly, as an overall positive advancement from a regulatory perspective. Therefore, even in a cash tender offer review period, this deal will almost certainly receive HSR clearance without delay.

IMCL markets and sells Erbitux throughout Europe through an agreement with Merck, so there exists the potential for EC and/or GFCO reviews for this deal. As with all tender offer transactions, any required non-U.S. regulatory requirements may force some brief extensions beyond the initial tender offer expiration date. Nevertheless, there is current no expectation that regulatory issues will prevent LLY from successfully completing this tender offer before the end of November, or by early December in a worst-case scenario.