Pharmaceutical developer Bristol-Myers Squibb Co., in Princeton, acquired San Diego-based Amylin Pharmaceuticals Inc., on Friday, for approximately $5.3 billion in cash to expand its research, development and commercialization of diabetes treatments.
Taking into account Amylin’s debt and payment obligation to Eli Lilly & Co., the total value of the transaction is approximately $7 billion.
Once the buyout is completed, London-based AstraZeneca Plc will pay Bristol-Myers $3.4 billion to collaborate on developing Amylin’s diabetes products and expand its existing research partnership with the company.
In a statement, Bristol-Myers CEO Lamberto Andreotti said the acquisition is “a unique way for Bristol-Myers Squibb and AstraZeneca to expand the alliance … and it demonstrates Bristol-Myers Squibb’s innovative and targeted approach to partnerships and business development.”
“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,” said Simon Lowth, interim CEO of AstraZeneca, in a statement. “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.”
The transactions are expected to become slightly accretive in 2014, following approvals under customary terms and conditions.