By Toni Clarke

BOSTON (Reuters) - Intensifying his effort to take control of beleaguered biotechnology company ImClone Systems Inc., billionaire investor Carl Icahn lashed out at members of the board for having profited from the sale of ImClone shares even as they expressed confidence in the company's future.

In a letter to shareholders dated Oct. 17, Icahn reiterated his claim that ImClone's management failed to properly develop its cancer drug Erbitux, and said they had not all shared in the misery of ImClone's investors, who have seen the company's shares fall 65 percent to $30.60 from a high of $86 in July 2004.

Icahn, who is seeking to remove four directors from the board and add a nominee of his own -- a move that would give him control of the company -- accused the four of profiting either through the sale of stock or other compensation while failing to conduct clinical trials of Erbitux that he claims could have positioned it better for competition.

"Since July 1, 2003, (board member) Vincent DeVita has netted approximately $2.8 million from selling stock, John Fazio netted approximately $460,000 from selling stock and William Miller netted approximately $420,000 from selling stock," Icahn wrote in his letter, filed with the U.S. Securities and Exchange Commission.

A spokesman for New York-based ImClone said the company's views are contained in its own public filings, in which it defends the board members and urges shareholders not to place ImClone in the hands of Icahn.

Icahn said that Joseph Fischer, the company's current chief executive officer who Icahn is also seeking to remove, receives cash compensation of approximately $87,000 per month in salary.

"The four directors have not exactly shared in the bad fortune of ImClone's shareholders," he said. "It is not surprising that they want to hold on to their positions as directors."

DeVita is a professor of medicine at Yale Cancer Center; Fazio is a former senior general practice partner at PricewaterhouseCoopers; Miller is former chairman of the board of ImClone's partner Bristol-Myers Squibb Co. ; and Fischer is former corporate controller at diversified healthcare company Johnson & Johnson.

The board members were not immediately available for comment.

ders," he said in a filing with the U.S. Securities and Exchange Commission. "It is not surprising that they want to hold on to their positions as directors."

A spokesman for ImClone was not immediately available for comment.

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