Bristol-Myers Squibb has signed an agreement to acquire Medarex, Inc. for $2.1 billion in cash (net of Medarex’s $300 million in cash holdings). The transaction has been approved by the boards of directors of both companies, and Medarex has agreed not to solicit any other acquisition partners. BMS will finance the deal with its existing cash.

BMS will gain Medarex’s UltiMAb Human Antibody Development System and next-gen Antibody-Drug Conjugate (ADC) technology for use in immunology and oncology therapeutic areas. BMS will receive royalties on sales of currently marketed therapies: Simponi, Stelara and Ilaris. BMS will have rights to seven antibodies in clinical trials and rights to preclinical assets, as well as rights to ipilimumab, currently in Phase III development for metastatic melanoma and Phase II trials in lung cancer.

“Medarex’s technology platform, people and pipeline provide a strong complement to our company’s biologics strategy, specifically in immuno-oncology,” said James M. Cornelius, chairman and chief executive officer, BMS. “With its productive and proven antibody discovery capabilities, ability to generate interesting therapeutic programs and unique set of preclinical 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.”

Said Howard H. Pien, Medarex’s chairman and chief executive officer, “We believe 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 and resources to bring innovative cancer treatment options to patients in need.”

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Bristol-Myers Squibb 2Q

2Q Revenues: $5.4 billion (+3%)

2Q Earnings: $1.3 billion (+29%)

YTD Revenues: $10.4 million (+3%)

YTD Earnings: $2.2 billion (+17%)

Comments: Revenues were up 8% excluding foreign exchange impact. Biopharmaceutical sales were $4.7 billion in the quarter (+4%). Plavix sales were $1.5 billion (+11%). Abilify sales were $643 million (+22%). Baraclude sales were $179 million (+32%). Sustiva franchise sales were $312 million (+11%). Reyataz sales were $331 million (+2%). Orencia and Sprycel sales were up 40% and 41% to $148 million and $107 million, respectively. Erbitux sales were down 12% to $173 million. R&D expenses were flat at $781 million in the quarter.

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Wyeth 2Q

2Q Revenues: $5.7 billion (-4%)

2Q Earnings: $1.3 billion (+13%)

YTD Revenues: $11.1 billion (-5%)

YTD Earnings: $2.5 billion (+7%)

Comments: Excluding the unfavorable impact of foreign exchange, earnings were up 2% for the quarter and first half. Effexor sales were down 25% to $772 million in the quarter. Prevnar sales rose 24% to $783 million. Enbrel alliance revenue was $304 million (+7%), while Wyeth’s sales of Enbrel outside the U.S. and Canada were $736 million (+6%). Premarin product sales were down 5% to $257 million. Hemophilia product sales were $248 million (-1%). Protonix product sales were $237 million (+4%). Results in the quarter include charges of $66.1 million related to productivity initiatives and costs associated with the proposed merger with Pfizer. R&D expenses in the quarter were up 7% to $885.3 million.

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Genzyme 2Q

2Q Revenues: $1.2 billion (+5%)

2Q Earnings: $192.2 million (earnings were $69.6 million in 2Q08)

Comments: Myozyme revenue was $79.3 million, up from $67.4 million in 1Q09, reflecting the E.U. approval of production at the 4000 L scale. Cerezyme revenue was down 7% to $298.1 million, impacted by the temporary Allston shutdown and unfavorable currency exchange rates. Sales of Fabrazyme were $134.3 million (+6%). Sales of Thyrogen were $42.9 million (+9%). Hematologic oncology revenue doubled in the quarter to $55.9 million, driven by new revenue from Leukine and Fludara, acquired from Bayer at the end of May. Results include $13 million in lost revenue due to the interruption of Cerezyme shipments associated with the temporary shutdown of the Allston manufacturing facility in June. Earnings in 2Q08 reflect a $175 million licensing fee associated with mipomersen.

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