Bristol-Myers Squibb Co. (BMY) will buy Amylin Pharmaceuticals
(AMLN) for about $5.3 billion, or $31 a share, the companies
announced Friday. The transaction was unanimously approved by both
boards of directors, the companies said. Including a contractual
payment obligation to Eli Lilly (LLY) and Amylin's net debt, the
total value of the transaction is about $7 billion, the companies
said.
The deal gives Bristol-Myers a stake in the future of two
diabetes drugs, Byetta and Bydureon. Once the deal is completed,
Bristol-Myers and AstraZeneca (AZN.LN) will enter into a
collaboration arrangement based on existing deals regarding the
development of Amylin's diabetes drugs. AstraZeneca will pay $3.4
billion to Amylin, the companies said.
"Amylin's innovative diabetes portfolio, talented people and
state-of-the art manufacturing facility complement our
long-standing leadership in metabolics," said Lamberto Andreotti,
chief executive of Bristol-Myers. "We are pleased to be able to
strengthen the portfolio we have built to help patients with
diabetes by building on the success Amylin has had with its GLP-1
franchise. The acquisition of Amylin by Bristol-Myers Squibb is
also a unique way for Bristol-Myers Squibb and AstraZeneca to
expand the alliance between the two companies, and it demonstrates
Bristol-Myers Squibb's innovative and targeted approach to
partnerships and business development."
Shares in Amylin Pharmaceuticals, of San Diego, closed up 0.6%
on Friday at $28.20, near its 52-week high. The shares have more
than doubled in value since the beginning of 2012. Bristol-Myer
shares closed up 2.5% at $35.95.
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