WASHINGTON, Oct 6, 2008 (AFP) - US pharmaceutical company Eli Lilly said Monday it had agreed a takeover worth 6.5 billion dollars with biotech firm ImClone, which is also a target for rival Bristol-Myers Squibb (BMS).

Eli Lilly and ImClone said in a joint statement they had agreed a takeover pitched at 70 dollars a share, compared with 62 dollars per share in a revised offer from BMS.

ImClone is specialised in cancer treatments. Its main asset is drug Erbitux.

'We think very highly of ImClone's ground-breaking work in oncology, particularly its success with Erbitux,' said John Lechleiter, Eli Lilly's president and chief executive officer, in a statement.

BMS, which holds joint rights for Erbitux in North America, launched a bid for Imclone at the end of July, which Imclone rejected as being too low.

On September 10, Imclone said it had received an offer for 70 dollars a share, but declined to identify the bidder. Monday's announcement ends the mystery about the company behind this advance.