BMS & Medarex: a valuable partnership?

On July 22, 2009, Bristol-Myers Squibb announced that it would acquire - at a considerable premium - biopharmaceutical company Medarex for US$2.4 billion. The deal secures rights for Bristol-Myers Squibb to the anti-cancer monoclonal antibody product ipilimumab, plus related revenues from Medarex' licensing deals and portfolio. However, ipilimumab is still in Phase III trials and results are not expected until mid to late 2010.

Patent Expiry and Competition - a bigger headache

Bristol-Myers Squibb's main blockbuster product, the anti-clotting product Plavix (clopidogrel) loses patent protection in 2011. But that is not the end of the company's problems, as recent events demonstrate:

• May 29 2009 - The European Medicines Agency stated that its scientific committee issued positive opinions for six generic versions of Plavix. The recommendations were given to products filed by Teva, Acino and Pharmathen.
• July 10 2009 - The FDA announced approval of Eli Lilly and Daiichi Sankyo's much-anticipated antiplatelet agent Effient (prasugrel) for the reduction of the risk of formation of blood clots in patients who undergo angioplasty.

In addition, Bristol-Myers Squibb will lose patent protection on Avapro (irbesartan) in 2011 and Abilify (aripiprazole) in 2012 - in short, revenues from three of its best-selling products are under threat.

Is the Medarex deal a knee-jerk reaction or part of a planned growth strategy? What options does Bristol-Myers Squibb have?

See the deal in the broader context of Bristol-Myers Squibb's operations

For an assessment of this important development, turn to the FirstWord Dossier report Bristol-Myers Squibb and Medarex: a valuable partnership? Using primary source data and information, this executive briefing presents a timely and easy-to-read review, which puts the deal into its corporate and market context.