Bristol-Myers Squibb Company ( ) and Medarex, Inc. (NASDAQ: ) were excited to announce that the companies have signed a definitive merger agreement providing for the acquisition of Medarex by Bristol-Myers Squibb for $16.00 per share in cash. Both companies’ boards of directors have unanimously approved the transaction, with an aggregate purchase price of approximately $2.4 billion. Medarex’s projected $300 million in net cash and marketable securities at closing would be an asset acquired by Bristol-Myers Squibb resulting in an implied purchase price of approximately $2.1 billion.
James M. Cornelius, chairman and chief executive officer of Bristol-Myers Squibb, stated, “Medarex’s technology platform, people and pipeline provide a strong complement to our company’s biologics strategy, specifically in immuno-oncology. With its productive and proven antibody discovery capabilities, ability to generate interesting therapeutic programs and unique set of pre-clinical 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.”
Medarex’s chairman and chief executive officer, Howard H. Pien, added, “We believe that this combination with Bristol-Myers Squibb, a global leader in oncology, provides an excellent opportunity to realize the full potential of Medarex’s development portfolio and our UltiMAb® technology platform through a transaction which also provides an attractive valuation for our shareholders. Medarex has evolved significantly over the past two decades from a research platform to a development company. We believe that 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, resources, motivation and dedication to bring innovative cancer treatment options to patients in need.”
As a result of their acquisition, Bristol-Myers Squibb gains significant technological development opportunities. The company will acquire Medarex’s UltiMAb Human Antibody Development System®, which produces high affinity, fully human antibodies for use in a broad range of therapeutic areas, including immunology and oncology. This validated technology platform has produced compounds which are now currently marketed therapies, including SIMPONI™, STELARA™ and ILARIS®, whose royalties will go to Bristol-Myers Squibb.
