DARMSTADT, Germany, Sept. 20 /PRNewswire/ -- Merck KGaA, in response to
media inquiries, clarified that it acquired the worldwide rights to develop
and commercialize the cancer drug C225 outside the U.S. and Canada in December
1998 from ImClone Systems Inc. of New York City.  Merck has co-development and
co-marketing rights for the drug in Japan.
    Bristol-Myers Squibb Co. announced yesterday that it is acquiring the
rights to C225 in North America, which is expected to account for about half
of the drug's worldwide sales.  Pharmaceutical analysts expect peak annual
sales of this monoclonal antibody tumor fighter to reach $1 billion within
5-7 years after market introduction, which is anticipated for the end of 2002.
    In connection with the agreement announced yesterday, Merck agreed to
relinquish certain rights to C225 in the U.S. to ImClone and Bristol-Myers.
In return, its royalty payments to ImClone will be reduced.  Merck agreed in
1998 to pay ImClone about $60 million, including up-front fees and milestone
payments, for development and marketing rights to C225.  Merck KGaA currently
has about a 3% stake in ImClone.
    Merck KGaA and Bristol-Myers Squibb already have a long, successful and
friendly business association through the world's best-selling antidiabetic,
Glucophage.  BMS acquired the U.S. rights to the Merck drug in 1995.  Through
this partnership, total revenue from the Glucophage Family of products totaled
EUR 1.6 billion in the first half of 2001.
    "We are very pleased with the announcement by Bristol-Myers," said Prof.
Bernhard Scheuble, chairman and chief executive at Merck KGaA.  "This confirms
our early decision to help ImClone develop this important life-saving drug.
We also look forward to continuing our long relationship with Bristol-Myers."
    C225 is in Phase II clinical trials for treatment of patients with
colorectal cancer with "fast-track" designation for approval by the U.S. Food
and Drug Administration.  ImClone expects C225 could be on the U.S. market for
this indication as early as next year.  Merck KGaA anticipates the first
approval of C225 for use in Europe, probably from Switzerland, could follow
shortly thereafter.  In addition, C225 is in Phase III clinical trials for use
in combination with radiation to treat head and neck cancer.  C225 is also
being tested on other forms of cancer.

    Merck KGaA also has worldwide licensing rights to another promising cancer
drug in the ImClone pipeline, BEC2.  This treatment for small-cell lung
carcinoma is in Phase III clinical trials.
    Merck KGaA, with a 330-year history of innovation in pharmaceuticals, is
focusing itself at the cutting edge of cancer research.  The company's
oncology pipeline currently has eight projects in various stages of clinical
development.  These stem from four biotechnology platforms -- monoclonal
antibodies, vaccines, immunocytokines and angiogenesis inhibitors.  Merck
continues to expand its pipeline through its own internal research and
intelligent licensing.

    Notes:
    For more information on the drugs C225 and BEC2, see ImClone's website:
http://www.imclone.com. For more information about Bristol-Myers Squibb, please go to
the company website: http://www.bms.com .

    Headquartered in Darmstadt/Germany, the Merck Group generates sales of
EUR 6.7 billion in 2000 in the fields of Pharmaceuticals, Specialty Chemicals,
Lab Products and Lab Distribution.  Founded in 1668, the Merck Group is
represented today by more than 200 companies in 52 countries and employs
34,300 people worldwide.  The company groups its operating activities under
Merck KGaA, in which E. Merck, as a general partner, holds the Merck family's
74 percent equity interest in Merck KGaA.  The Merck Group strongly believes
that promotion of its employees' self-initiative and self-responsibility,
application-oriented research and development and close customer relationships
in the markets are the keys to long-term corporate success.

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