by Christopher Freeburn | July 2, 2012 9:24 am
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.
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.
Source URL: http://investorplace.com/2012/07/bristol-myers-squibb-to-buy-amylin-for-7b/
Short URL: http://investorplace.com/?p=191745
Copyright ©2013 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.