Saturday, June 30, 2012

AZBMS Matt Herper explains

Why Bristol And Astra Teamed Up To Buy Amylin In Unique $7 Billion Deal

Two of the worlds largest drug giants are teaming up to buy a smaller rival to get access to its once-a-week diabetes shot.

Technically speaking, New York‘s Bristol-Myers Squibb is spending $5.3 billion to purchase Amylin Pharmaceuticals, maker of the diabetes drugs Byetta and Bydureon, plus another $1.7 billion in debt and to fulfill a contractual obligation to Eli Lilly, which was Amylin’s former partner. In a twist, London-based AstraZeneca will pay $3.5 billion, or half the total payment price, for 50% of the profits from Amylin’s drugs and plans to exercise an option that will give them a 50% share in deciding how Amylin’s existing and experimental drugs are managed.

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