Drug giant Bristol Myers Squibb (NYSE:BMY) said late Wednesday it planned to buy partner Medarex (NASDAQ:MEDX) for $2.4 billion.
Bristol-Myers will pay $16 in cash for each share of Princeton, N.J.-based Medarex. After adjusting for the roughly $300 million on Medarex’s books, the implied purchase price comes to $2.1 billion.
The transaction, which has been unanimously approved by the boards of directors of both companies, represents a premium of more than 90% to Medarex’s closing price on Wednesday of $8.40.
“Medarex’s technology platform, people and pipeline provide a strong complement to our company’s biologics strategy, specifically in immuno-oncology,” said Bristol-Myers Chairman and CEO James Cornelius.
Under the terms of the merger agreement, Bristol-Myers will commence a cash tender offer on or about July 27, 2009 to purchase all of the outstanding shares of Medarex common stock. The deal is expected to close 30 days later, pending regulatory approval.
Bristol-Myers was advised by Goldman Sachs (NYSE:GS) in connection with the acquisition, while Medarex was advised by JPMorgan Chase (NYSE:JPM).
The announcement comes a day before Bristol-Myers is slated to release its Q2 earnings. The drug company is expected to report $0.47 EPS.