Bristol-Myers Squibb buys Amylin for $5.3B plus debt

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Bristol-Myers Squibb will acquire Amylin in a deal totaling $7 billion after the companies’ boards of directors unanimously approved the acquisition.

Amylin is a pharmaceutical company that discovers, develops and commercializes medicines for patients with diabetes and other metabolic diseases. Amylin’s primary focus is on the research, development and commercialization of a franchise of GLP-1 agonists for the treatment of type 2 diabetes.

The FDA approved Amylin’s diabetes drug Bydureon, a once-weekly therapy for patients with type 2 diabetes, in January. Bydureon received marketing authorization by the European Commission in June 2011. The therapy is a formulation of exenatide, the active ingredient in Byetta injection, which has been available in the U.S. since June 2005 and is used in more than 70 countries.

The acquisition deal includes an aggregate purchase price of approximately $5.3 billion plus Amylin’s net debt and a contractual payment obligation to Eli Lilly & Company, which together add on $1.7 billion, Bristol-Myers Squibb announced June 29.

Following the completion of the acquisition, Bristol-Myers Squibb and AstraZeneca will enter into collaboration arrangements, based on the framework of the existing diabetes alliance, for the development and commercialization of Amylin’s portfolio of products. AstraZeneca will make a payment to Amylin, as a wholly owned subsidiary of Bristol-Myers Squibb, in the amount of approximately $3.4 billion in cash.

Profits and losses arising from the collaboration will be shared equally. In addition, AstraZeneca has the option to establish equal governance rights over key strategic and financial decisions regarding the collaboration, upon the payment to Bristol-Myers Squibb of an additional $135 million.

These collaboration arrangements were approved by the boards of directors of Bristol-Myers Squibb and AstraZeneca. Bristol-Myers Squibb and AstraZeneca entered into a collaboration in January 2007 to enable the companies to research, develop and commercialize select investigational drugs for type 2 diabetes.