Bristol-Myers Squibb has reported good results for the second quarter of 2009 soon after announcing that the company would complete a strategic acquisition of Medarex for about $2.4bn.
Bristol-Myers Squibb announced sales and earnings growth for the second quarter based on strong sales in biopharmaceuticals, improved gross margin and operating results, an increase in GAAP EPS of 36% and a Non-GAAP EPS increases 30% compared to the second quarter of 2008.
Bristol-Myers Squibb chairman and chief executive officer James M Cornelius said that the excellent results for the second quarter and first six months of the year clearly represent how Bristol-Myers Squibb is rapidly transforming into a next-generation BioPharma leader.
"Nowhere is that more evident than with our planned acquisition of Medarex," Cornelius said.
The company announced the acquisition of Medarex on 23 July.
The transaction, with an aggregate purchase price of approximately $2.4bn, was unanimously approved by the boards of directors of both companies.
As result of the acquisition Bristol-Myers Squibb will gain Medarex's UltiMAb Human Antibody Development System as well as the company's next-generation antibody drug conjugate technology.
Bristol-Myers Squibb will also receive rights to seven antibodies in clinical trials under Medarex's sole sponsorship, three other antibodies currently being co-developed with other partners as well as 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," said 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 our BioPharma transformation."
Under the terms of the merger agreement, Bristol-Myers Squibb will commence a cash tender offer on or about 27 July 2009 to purchase all of the outstanding shares of Medarex common stock for $16 per share in cash.