Bristol-Myers Squibb will acquire Amylin for $31.00 per share in cash, pursuant to a cash tender offer and second step merger, or a total buying price nearing $5.3bn.
The acquisition value includes Amylin's debt proceeds and a contractual payment to Eli Lilly & Company, which amounts to nearly $7bn.
With the completion of Bristol-Myers Squibb's acquisition of Amylin, Bristol-Myers Squibb and AstraZeneca will enter into collaboration, based on the framework of the existing diabetes alliance in regard to the development and commercialisation of Amylin's products.
AstraZeneca will make a payment of $3.4 bn to Amylin as part of the acquisition.The aquistion aims to strengthen diabetes alliance.
As part of the merger agreement between the companies , Bristol-Myers Squibb will commence a cash tender offer to own all of the outstanding shares of Amylin's common stock for $31.00 per share. Gains and losses coming from the collaboration will be shared equally.
AstraZeneca has the right to exercise and establish equal rights of governance over strategic and economic decisions in regard to the collaboration, upon the payment of $135m to Bristol-Myers Squibb.
Bristol-Myers Squibb CEO Lamberto Andreotti said, "Amylin's innovative diabetes portfolio, talented people and state-of-the art manufacturing facility complement our long-standing leadership in metabolic."
AstraZeneca interim CEO Simon Lowth said,"This is a compelling proposition that will have an immediate positive impact on revenues and is fully in line with our stated partnering strategy to enhance top-line growth and strengthen our late stage pipeline.''
