AstraZeneca to buy Bristol-Myers Squibb share of global diabetes alliance assets
Move will strengthen AZ commitment to diabetes, a key growth platform in a core strategic area
AstraZeneca has agreed to buy Bristol-Myers Squibb’s interests in the companies’ diabetes joint venture in a deal worth up to US$4.1bn.
The deal is made up of an initial $2.7bn plus up to $1.4bn in additional regulatory and sales-related payments.
The Anglo-Swedish pharmaceutical firm has also agreed to pay various sales-related royalty payments up until 2025.
Once the deal is completed, AstraZeneca will own intellectual property and global rights for the development, manufacture and commercialisation of Onglyza (saxagliptin), Kombiglyze XR (saxagliptin and metformin HCl extended release), Komboglyze (saxagliptin and metformin HCl), dapagliflozin (marketed as Forxiga outside the US), Byetta (exenatide), Bydureon (exenatide extended-release for injectable suspension), metreleptin and Symlin (pramlintide acetate).
AstraZeneca will also take a $1.7bn tax charge following lower-than-expected sales of Bydureon, an injectable treatment acquired when the two groups last year took control of US biotech Amylin in a $7bn deal.
The deal reinforces AstraZeneca’s long-term commitment to diabetes, which is a core strategic area for the firm and an important platform for returning it to growth
The two firms anticipate that approximately 4,100 Bristol-Myers Squibb employees dedicated to the diabetes business, including those at Amylin, will move across to AstraZeneca. The firm will also become responsible for the manufacturing and supply chain of the full portfolio of diabetes products.
Bristol-Myers Squibb 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 Bristol-Myers Squibb to progress the diabetes portfolio and support the transition for these areas.
Pascal Soriot, Chief Executive 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.
'Together with Bristol-Myers Squibb we concluded that consolidating ownership of the diabetes portfolio would benefit both companies and allow us to serve better the needs of diabetic patients.'
He added that the deal reinforces AstraZeneca’s long-term commitment to diabetes, which is a core strategic area for the firm and an important platform for returning it to growth.
The agreement is expected to become effective in January 2014.
