AstraZeneca to acquire Bristol-Myers Squibb share of diabetes alliance assets
Friday, December 20, 2013
AstraZeneca will acquire the entirety of Bristol-Myers Squibb‘s interest in the companies’ diabetes alliance for $2.7 billion, and up to $1.4 billion in regulatory, launch and sales-related payments. AstraZeneca also has agreed to pay various sales-related royalty payments up until 2025 and may make payments up to $225 million when certain assets are subsequently transferred.
AstraZeneca will own intellectual property and global rights for the development, manufacture and commercialization of the diabetes business, which includes Onglyza (saxagliptin), Kombiglyze XR (saxagliptin and metformin HCl extended release), Komboglyze (saxagliptin and metformin HCl), dapagliflozin (marketed as Forxiga outside the U.S.), Byetta (exenatide), Bydureon (exenatide extended-release for injectable suspension), metreleptin and Symlin (pramlintide acetate).
The transaction will consolidate worldwide ownership of the diabetes business within AstraZeneca leveraging its primary and specialty care capabilities and its geographical reach, especially in emerging markets. AstraZeneca intends to finance the transaction from existing cash resources and short-term credit facilities.
AstraZeneca and BMS anticipate approximately 4,100 BMS employees dedicated to the diabetes business, including those at Amylin, eventually will transition to AstraZeneca. Over time, AstraZeneca also will become responsible for the manufacturing and supply chain of the full portfolio of diabetes products. BMS will continue to deliver specified clinical trials in line with the ongoing clinical trial plan. A number of R&D and manufacturing employees dedicated to diabetes will remain with BMS to progress the diabetes portfolio and support the transition.
Pascal Soriot, CEO of AstraZeneca said, “Diabetes is rapidly becoming a global challenge of epidemic proportions that is expected to affect more than 550 million people by 2030. Much of this impact will be felt in emerging markets where AstraZeneca has a strong presence. In recent years, we’ve worked with our alliance partners at Bristol-Myers Squibb to develop an innovative portfolio of non-insulin anti-diabetic medicines that help address the needs of these patients.”
The transaction is subject to customary terms and conditions and is expected to become effective in January 2014.