Bristol-Myers Squibb Co (NYSE: BMY), has agreed to buy biotechnology company Amylin Pharmaceuticals Inc (NASDAQ: AMLN) 5.3 billion USD in cash on a debt-free basis. The total value of the transaction after taking into account Amylin’s net debt and contractual obligations to Eli Lilly and Company (NYSE: LLY) is about 7 billion. Soon after the announcement, it was said that AstraZeneca (LSE: AZN, OMX: AZN), which had been thought to be in the running to buy Amylin and Bristol-Myers have made a deal to collaborate on Amylin’s products with AstraZeneca paying Amylin, as then a wholly owned Bristol-Myers subsidiary, 3.4 billion in cash for the rights upon the completion of the acquisition. This builds on top of earlier diabetes treatment cooperation of the two big pharma companies.
Bristol-Myers and AstraZeneca will share the profits and losses from the collaboration equally. The Boards of the three companies have approved the deals. AstraZeneca expects immediate positive impact on revenues as it seeks to add into its thin patented drugs and late-stage pipeline. Amylin’s portfolio of GLP-1 drugs including Byetta and Bydureon competes among others with Novo Nordisk (OMX: NOVO B). Added muscle behind the drugs should make the alliance an even more formidable competitor. Amylin’s other assets include a leptin analog Metreleptin currently under FDA review and approved amylin analog SYMLIN® (pramlintide acetate).
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