Bristol-Myers to buy Medarex

NEW YORK: US drugmaker Bristol-Myers Squibb Co on Wednesday said it will pay $2.4 billion to acquire Medarex Inc, a biotechnology company that has been helping it develop a promising treatment for melanoma since 2005.

Medarex's expertise in making antibody-based drugs could help Bristol-Myers as it strives to regain its stature as one of the world's leading players in the oncology market, and to develop treatments for immunologic conditions such as arthritis, lupus and psoriasis.

The agreed offer of $16 a share represents a 90 percent premium to Medarex's closing share price on Wednesday of $8.40 per share on the NASDAQ.