Bristol-Myers Squibb has signed an agreement to acquire Medarex, Inc. for $2.1 billion in cash (net of Medarex’s $300 million in cash holdings). The transaction has been approved by the boards of directors of both companies, and Medarex has agreed not to solicit any other acquisition partners. BMS will finance the deal with its existing cash.

BMS will gain Medarex’s UltiMAb Human Antibody Development System and next-gen Antibody-Drug Conjugate (ADC) technology for use in immunology and oncology therapeutic areas. BMS will receive royalties on sales of currently marketed therapies: Simponi, Stelara and Ilaris. BMS will have rights to seven antibodies in clinical trials and rights to preclinical assets, as well as rights to ipilimumab, currently in Phase III development for metastatic melanoma and Phase II trials in lung cancer.

“Medarex’s technology platform, people and pipeline provide a strong complement to our company’s biologics strategy, specifically in immuno-oncology,” said James M. Cornelius, chairman and chief executive officer, BMS. “With its productive and proven antibody discovery capabilities, ability to generate interesting therapeutic programs and unique set of preclinical and clinical assets in development, Medarex represents what we’re looking for in terms of our String of Pearls strategy. This acquisition is another important step in our BioPharma transformation.”

Said Howard H. Pien, Medarex’s chairman and chief executive officer, “We believe this transaction represents a great opportunity to place our clinical programs and technology assets in the hands of one of the world’s premier biopharmaceutical companies with the expertise and resources to bring innovative cancer treatment options to patients in need.”

View BMS in Contract Pharma’s Top Companies Report:
http://contractpharma.com/articles/2009/07/bristolmyers-squibb

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