Bristol-Myers Squibb To Buy Adnexus Thereapeutics for $430 Million

September 26, 2007
Patricia Van Arnum
ePT--the Electronic Newsletter of Pharmaceutical Technology

Reflecting a strategic interest to strengthen its position in biologics, Bristol-Myers Squibb agreed to acquire the biopharmaceutical company Adnexus Therapeutics for $430 million.

Princeton, NJ (Sept. 24)-Reflecting a strategic interest to strengthen its position in biologics, Bristol-Myers Squibb (BMS) agreed to acquire the biopharmaceutical company Adnexus Therapeutics (Waltham, MA) for $430 million.

“Bringing Adnexus into the Bristol-Myers Squibb family builds upon a successful and productive collaboration between the two companies in oncology and is an important step in accelerating the strategic transformation of our pharmaceutical business to a biopharma business model,” said Jim Cornelius, chief executive officer at Bristol-Myers Squibb, in a company release. “Biologics are one cornerstone of our growth strategy. This investment in biologics discovery complements our continued investment in a growing biologics pipeline and portfolio, and will benefit from our expanding biologics manufacturing capabilities, both at our existing site in Syracuse, New York, and our future large-scale bulk biologics facility in Devens, Massachusetts.”

Adnexus is a developer of a proprietary class of biologics called “Adnectins,” which are derived from fibronectin, an extracellular protein that is naturally abundant in human serum. Fibronectin binds to other proteins using protein structures called targeting domains. An Adnectin consists of a backbone of the natural amino-acid sequence of a certain domain of human fibronectin and one to three targeting loops redirected to enable an Adnectin to specifically recognize a therapeutic target of interest, according to company. The Adnectins are generated using the company’s “Profusion” proprietary protein-engineering system. According to Adnexus, although Adnectins and antibodies have targeting domains with three-dimensional shapes that resemble each other, the amino-acid sequences of each protein class are distinctly different. 

Under the deal, BMS will pay $430 million in cash for Adnexus,with the net purchase price of $415 million after deducting Adnexus’ net-cash balance at closing. In addition, there is an earn-out structure that could result in BMS paying an additional amount of approximately $75 million, in three increments of approximately $25 million each, in the event certain development and regulatory milestones are achieved. The closing of the transaction is subject to customary regulatory approvals. Upon closing of the deal, Adnexus Therapeutics will become a BMS subsidiary and will remain located in Waltham, Massachusetts.