DEFINITION of 'ImClone - IMCL'

ImClone (IMCL) was a publicly traded biotech company in the field of oncology. The founder and CEO was indicted for attempting insider trading. Shortly after the indictment of CEO Sam Waksal, "domestic diva" Martha Stewart was also indicted for insider trading of the same stock.

BREAKING DOWN 'ImClone - IMCL'

In 2001, Waksal received a tip that the U.S. Food and Drug Administration (FDA) was going to reject ImClone's Erbitux colon cancer drug. He then attempted to dump 80,000 shares. Waksal's family and friends also sold ImClone shares right before the FDA announcement. The stock subsequently plunged from a high of around $60 per share to less than $20 a share.

Stewart received information from Waksal and her own broker that Waksal had been trying to dump $5 million worth of his shares in the company on insider information, and she sold her shares on the knowledge that Waksal had tried to sell his. Both Sam Waksal and Martha Stewart were convicted of insider trading and other crimes and were sentenced to spend time in federal prisons.

In 2006, investor Carl Icahn later bought up shares of the company, gaining a controlling interest. After running the company for two years, he sold it to drugmaker Eli Lilly in 2008 for $6.5 billion, or about $70 per share.

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