Bristol-Myers Squibb Completes Amylin Purchase

Bristol-Myers Squibb (B-MS) yesterday announced that they have completed their $5 billion purchase of Amylin and its diabetes franchise, meaning they can now progress onto a planned marketing alliance with drug giant AstraZeneca.

The New York-based drug maker, who agreed to buy Amylin on the 1st July, confirmed that they have now successfully finalised their tender offer for all outstanding shares of Amylin’s common stock for $31.00 per share, giving Bristol-Myers Squibb an initial 85% hold in the organisation, and that they have exercised their right to take the remaining stock and conclude the merger.

AstraZeneca Marketing Alliance

AstraZeneca, who already have a diabetes partnership with Bristol-Myers Squibb, will now pay $3.40 billion for 50% of the profits made from Amylin’s drugs.

Furthermore, as per the arrangement agreed in July this year, AstraZeneca also have the option of giving Bristol-Myers Squibb another $135 million “to establish equal governance rights over key strategic and financial decisions regarding the collaboration.”

Explaining Bristol-Myers Squibb’s interest in the deal, B-MS’ chief executive, Lamberto Andreotti, commented that “Amylin’s innovative diabetes portfolio, talented people and state-of-the art manufacturing facility complement our long-standing leadership in metabolics.”

Simon Lowth, interim chief executive at AstraZeneca, added that the arrangement “is a compelling proposition that will have an immediate positive impact on revenues,” and “the combined development, regulatory and commercial strengths” of the agreement “provides an excellent platform to unlock the potential of Amylin’s differentiated treatments.”

Shares of B-MS dropped 46 cents to $32.08 in afternoon trading. In comparison, shares of Amylin were unaltered at $31.


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