The agreement, previously announced by both companies on November 8, 2004, became effective after all conditions were satisfied, including expiration of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Under the collaboration agreement, Bristol-Myers Squibb and Medarex plan to jointly develop MDX-010, a fully human antibody investigational product targeting the CTLA-4 receptor, which is currently in phase III clinical development for the treatment of metastatic melanoma.
Medarex will receive an initial cash payment of $50 million, of which $25 million will be for a purchase of Medarex’s common stock by Bristol-Myers Squibb. In addition, Medarex could receive up to $205 million if all regulatory milestones are met, and up to $275 million in sales related milestones.
Medarex has an option to co-promote and share profits with Bristol-Myers Squibb in the US and Bristol-Myers will receive an exclusive license outside the US and will pay royalties to Medarex on any commercial sales.