Bristol-Myers Squibb to Buy Amylin
By TheStreet Staff - 06/30/12 - 6:29 PM EDT
NEW YORK (TheStreet
) -- Bristol-Myers Squibb
announced late Friday that it's purchasing diabetes drugmaker Amylin Pharmaceuticals
in a deal valued at about $7 billion.
In a news release
, the companies said Bristol-Myers will pay $31.00 a share in cash for San Diego-based Amylin.
That adds up to about $5.3 billion.
Including Amylin's net debt and a payment obligation to Eli Lilly & Co.
, however, the deal's total value rises to about $7 billion, the companies said.
The purchase price offers a 9.9% premium of to Amylin's closing share price Friday of $28.20.
The boards of Bristol-Myers and Amylin have approved the transaction.
In addition, following the consummation of the deal, New York-based Bristol-Myers plans expand its diabetes partnership with AstraZeneca PLC
. The companies will collaborate on developing and marketing Amylin's portfolio of drugs.
AstraZeneca will pay Bristol-Myers Squibb approximately $3.4 billion in cash, and the two partners will split profits and losses from the collaboration.
Shares of Bristol-Myers Squibb closed Friday up 87 cents at $35.95. Shares of AstraZeneca ended the session up 36 cents at $44.75.
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