Bristol-Myers Squibb to Buy Amylin for $7B

AstraZeneca will pay $3.4 billion for partnership over Amylin's drugs

   

Bristol-Myers Squibb (NYSE:BMY) announced plans to purchase Amylin Pharmaceuticals (NASDAQ:AMLN)  for $7 billion on Friday.

The announcement sent Amylin shares up more than 8%, while shares of Bristol-Myers Squibb slipped fractionally in pre-market trading on Monday.

prescription drugs 200x200 Bristol Myers Squibb to Buy Amylin for $7B
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Under the terms of the announced deal, Bristol-Myers Squibb will pay $31 a share for the diabetes drug developer, the Associated Press noted.

The deal features a $5.3 billion cash payment, with the remaining $1.7 billion comprising Bristol Myers-Squibb’s absorption of Amylin’s debt and compensation paid to Eli Lily & Company (NYSE:LLY), which had marketed Amylin drugs under an agreement that expired last fall.

Amylin produces the diabetes treatment drugs Byetta and Bydureon.

AztraZeneca (NYSE:AZN) will collaborate on the development and marketing of Amylin’s drugs and will pay Bristol-Myers Squibb $3.4 billion in cash for the partnership.

Amylin’s management was pressured to seek the sale of the company by billionaire investor Carl Icahn, who controls about 10% of its shares, Reuters noted. Icahn, who waged a four-year campaign to force the firm into a sale, will make a roughly $80 million profit on the deal.


Article printed from InvestorPlace Media, http://investorplace.com/2012/07/bristol-myers-squibb-to-buy-amylin-for-7b/.

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