Wednesday, July 30, 2014
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Bristol-Myers Squibb pays $5.3 billion for Amylin, makes deal with AstraZeneca

Bristol-Myers Squibb announced Friday night that it agreed to buy Amylin Pharmaceuticals for $5.3 billion and then struck a secondary deal with AstraZeneca, whose regional headquarters is in Wilmington.

Bristol-Myers Squibb pays $5.3 billion for Amylin, makes deal with AstraZeneca

Bristol-Myers Squibb announced Friday night that it has agreed to buy San Diego-based Amylin Pharmaceuticals for $5.3 billion and then struck a secondary deal with AstraZeneca, whose regional headquarters is in Wilmington.

Bristol-Myers is based in New York, but the company has five New Jersey facilities.

Bristol-Myers won a bidding competition with several other pharmaceutical companies for Amylin, which has a couple key products in the diabetes category. Bristol-Myers will pay cash for Amylin, and then also assume Amylin debt and make a required payment to Eli Lilly and Co., Inc., which makes the total cost to be $7 billion.

Once Bristol-Myers completes the payment, Amylin will become a subsidiary.

Then AstraZeneca will pay $3.4 billion to Amylin for what is described as a "collaboration arrangement," which is "based on an existing diabetes alliance" between AstraZeneca and Bristol-Myers. Profits and losses will be shared equally, according to the statement issued jointly by Bristol-Myers and AstraZeneca.

AstraZeneca also has an option to take over governance rights to the collaboration if it pays Bristol-Myers an additional $135 million.

AstraZeneca has been searching for a new strategy in the last year after several research setbacks, thousands of layoffs and the departure of chief executive officer David Brennan.

“This is a compelling proposition that will have an immediate positive impact on revenues and is fully in line with our stated partnering strategy to enhance top-line growth and strengthen our late-stage pipeline," Simon Lowth interim CEO of AstraZeneca, said in the joint statement.

"The broadening of our diabetes collaboration with Bristol-Myers Squibb is another important step towards creating a leadership position in the treatment of a disease with growing unmet medical need that is reaching epidemic proportions in many areas of the world. The combined development, regulatory and commercial strengths of the AstraZeneca and Bristol-Myers Squibb alliance for diabetes provides an excellent platform to unlock the potential of Amylin’s differentiated treatments for the benefit of patients worldwide and for our shareholders.”

 

David Sell
About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

For Inquirer.com. Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at dsell@phillynews.com.

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