Bristol-Myers Squibb to Acquire Amylin Pharmaceuticals (BMY, AMLN)
Bristol-Myers Squibb Co. (NYSE: BMY) will acquire Amylin Pharmaceuticals Inc. (NASDAQ: AMLN), the San Diego, California-based biopharmaceutical company, for approximately $5.3 billion in an all cash-transaction. The acquisition would allow BMY to extend its portfolio of diabetes treatments.
Bristol-Myers announced late Friday that it also reached a follow-on deal with AstraZeneca Plc to collaborate on the development of Amylin’s products once the acquisition is completed. Following the completion of acquisition of Amylin, AstraZeneca will pay $3.4 billion in cash for these rights to AMLN, as a wholly-owned subsidiary of BMY.
Lamberto Andreotti, CEO of Bristol-Myers Squibb, said in a statement that the deal is a unique way to build on its relationship with AstraZenece, and demonstrates BMY’s innovative and targeted approach to partnerships and business development.
It may be recalled that Amylin had rejected Bristol-Myers’ earlier $3.5 billion takeover offer. Since then, AMLN has been reaching out to potential buyers for a takeover. Reuters, citing people with the knowledge of the situation, says that AstraZenece, Novartis and Sanofi SA were among those interested to acquire AMLN.
Under the terms of the agreement, Bristol-Myers will acquire Amylin for $31 per share. The offer price represents a premium of 10% over AMLN’s closing price on Friday. The transaction has been approved by the Board of Directors of Amylin.
Daniel M. Bradbury, President and CEO of Amylin, said that AMLN is pleased to announce the transaction that provides substantial value for shareholders. Bradbury said that over the last several months, AMLN’s Board of Directors, with the help of company’s financial and legal advisors, has been actively engaged in a robust and thorough strategic process designed to boost the value of its unique diabetes franchise. Bradbury said that he strongly believes AMLN has accomplished that objective.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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