By Lisa Kerner
Charlotte, N.C., July 23 - Bristol-Myers Squibb Co. announced that it agreed to acquire Medarex, Inc. for $16.00 cash per share in a transaction valued at approximately $2.4 billion, including Medarex's projected $300 million in net cash and marketable securities.
According to Bristol-Myers, it will begin a tender offer for the Medarex shares on or about Monday.
Medarex, a Princeton, N.J., biopharmaceutical company, agreed not to solicit any competing offers for the company.
A $70.8 million termination fee is included as part of the merger agreement, according to a form 8-K filed with the Securities and Exchange Commission.
The merger will give Bristol-Myers Medarex's UltiMAb human antibody development system, which produces antibodies for use in a range of therapeutic areas, including immunology and oncology, a Bristol-Myers news release said.
Bristol-Myers, a New York biopharmaceutical company, said it will also gain full ownership and rights to ipilimumab, a novel immunotherapy currently in phase III development for the treatment of metastatic melanoma.
"Medarex's technology platform, people and pipeline provide a strong complement to our company's biologics strategy, specifically in immuno-oncology," Bristol-Myers chairman and chief executive officer James M. Cornelius said in the release.
J.P. Morgan Securities, Inc. advised Bristol-Myers Squibb. Medarex was advised by Goldman, Sachs & Co.
| Acquirer: | Bristol-Myers Squibb Co.
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| Target: | Medarex, Inc.
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| Announcement date: | July 23
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| Price per share: | $16.00
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| Termination fee: | $70.8 million
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| Expected closing: | Upon approvals
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| Stock price of target: | Nasdaq: MEDX: $8.40 on July 22
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