By Sherri Oslick --
On Wednesday Bristol-Myers Squibb and Medarex, Inc. announced that they have entered into a definitive merger agreement by which Bristol-Myers Squibb will acquire Medarex for $2.4 billion. With Medarex holding approximately $300 million in net cash and marketable securities, the purchase prices is effectively about $2.1 billion. Under the agreement, Bristol-Myers Squibb will commence a cash tender offer on or about July 27, 2009 to purchase all of the outstanding shares of common stock for $16.00 per share, and the companies expect the tender offer to close approximately 30 days after its commencement.
Under the agreement, Bristol-Myers Squibb will acquire rights to ipilimumab, currently in Phase III clinical trials for the treatment of metastatic melanoma, as well as Phase II studies for the treatment of lung cancer and Phase III studies for the treatment of adjuvant melanoma and hormone-refractory prostate cancer. Bristol-Myers Squibb will also acquire Medarex's UltiMAb Human Antibody Development System®, Medarex's Antibody-Drug Conjugate technology, rights to seven antibodies in clinical trials under Medarex's sole sponsorship and three other antibodies being developed jointly by Bristol-Myers Squibb and Medarex (including ipilimumab), and royalties based on a percentage of sales for SIMPONI™, STELARA™ and ILARIS®.
For additional information regarding the merger agreement, please see:
• Bristol-Myers Squibb's press release
• Medarex's press release
Additional Disclaimer: MBHB represents Bristol-Myers Squibb on certain matters.
To the extent that this post contains any opinions, the
opinions would be of Dr. Oslick and not Bristol-Myers Squibb or MBHB.
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