BMS buys Medarex for $2.1 billion
pharmafile | July 24, 2009 | News story | Research and Development, Sales and Marketing | BMS, MA, Medarex
Bristol-Myers Squibb is to spend $2.1 billion in buying Medarex, the human antibody drug discovery specialists.
Princeton-based Medarex is best known for collaborating with Johnson & Johnson on the development of Simponi, the next-generation rheumatoid arthritis drug that recently gained US approval.
Another collaboration between the two companies, Stelera (ustekinumab), a human antibody for moderate to severe plaque psoriasis has also been approved in Europe and Canada, but is still awaiting US approval. The company also has CNTO 95, an anti-integrin antibody, in phase II development for the treatment of cancer.
The deal helps BMS diversify its business and R&D model to include a leading biotechnology platform.
It also gives it access to Medarex's substantial royalties from its marketed drugs and others in its collaborative pipelines.
"Medarex's technology platform, people and pipeline provide a strong complement to our company's biologics strategy, specifically in immuno-oncology," said BMS chief executive James Cornelius.
"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 Howard Pien commented: "We believe that this combination with Bristol-Myers Squibb, a global leader in oncology, provides an excellent opportunity to realise 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."
Through the acquisition Bristol-Myers Squibb gains:
* 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 that are now currently marketed therapies (Simponi, Stelera and Ilaris).
* Medarex's next-generation Antibody-Drug Conjugate (ADC) technology, a novel proprietary platform that could open new fields in oncology drug development.
* Rights to seven antibodies in clinical trials under Medarex's sole sponsorship and three other antibodies being co-developed with other partners. Rights to pre-clinical assets in various stages of development by Medarex – in particular, monoclonal antibodies focused in oncology and immunology.
* Full ownership and rights to ipilimumab, which, if approved, could be an important contributor to BMS' future growth. The companies have collaborated on the development of ipilimumab, a novel immunotherapy currently in phase III development for the treatment of metastatic melanoma. The companies also have an ongoing phase II study in lung cancer as well as phase III studies in adjuvant melanoma and hormone-refractory prostate cancer.
* Royalties based on percentage of sales for Simponi, Stelara and Ilaris
"We welcome the opportunity to further collaborate with the Medarex scientific leadership," said Elliott Sigal, executive vice president and president of R&D at Bristol-Myers Squibb.
"In addition to our Adnexus team, which has been expanded since it was acquired in 2007, Medarex scientists will help us create an industry-leading biologics capability. We believe Medarex's antibody generation expertise, located in California and New Jersey, will complement our existing biologics efforts with a dedicated discovery and development capability in immuno-oncology."
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