Bristol-Myers Squibb Company and Medarex, Inc. have entered into a global development and commercialization collaboration agreement, which was previously announced by both companies on November 8, 2004.

The agreement 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.

As previously announced, 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 United States. Bristol-Myers Squibb will receive an exclusive license outside of the United States and will pay royalties to Medarex on any commercial sales, a release from BMS said.