Bristol-Myers to acquire biotechnology company Medarex for $2.4 billion

US drugmaker Bristol-Myers Squibb, which, of late, has been making a series of acquisitions, said yesterday that it is acquiring biotechnology company Medarex Inc, a for $2.4 billion to expand its oncology and immunology pipeline.
 
New York City-based Bristol-Myers, with 2008 net sales of $20.6 billion, will pay $16 per share in cash for New Jersey-based Medarex - a 90-per cent premium over yesterday's closing price of $8.40.

Bristol already holds a 2-per cent stake in Medarex.

Both companies have been jointly developing Ipilimumab, an experimental treatment for melanoma, a serious type of skin cancer with no known cure, for the past four years.

Bristol-Myers said in a statement the two companies had already conducted three mid-level clinical trials in the past two years, with 30 to 42 per cent patients still surviving after being treated with the drug for metastatic melanoma.

The companies are now conducting last-stage trials as needed under US laws to prove that the drug has a clear survival benefit. Bristol Myers said that it would acquire full ownership and rights to Ipilimumab, which, if approved, could be an important contributor to the company's future growth.

"Medarex's technology platform, people and pipeline provide a strong complement to our company's biologics strategy, specifically in immuno-oncology,'' said James Cornelius, chairman and chief executive officer, Bristol-Myers Squibb.