Bristol-Myers Squibb, AstraZeneca expand alliance through Amylin acquisition
30 June 2012
Global pharmaceutical major Bristol-Myers Squibb and AstraZeneca have teamed up to buy Amylin Pharmaceuticals, a biopharmaceutical company for $7 billion.
Amylin, headquartered in San Diego, California, specialises in delivering novel therapies for diabetes and other metabolic disorders.
As per the deal, Bristol-Myers Squibb will acquire Amylin for $31 per share in cash, pursuant to a cash tender offer and second step merger, for an aggregate purchase price of approximately $5.3 billion. The offer price is a 10 per cent premium to Amelyn's closing share price on Friday.
The total value of the transaction, including Amylin's net debt and a contractual payment obligation to Eli Lilly & Company, together totaling about $1.7 billion, is approximately $7 billion.
Amylin had last month rejected a $3.5 billion, $22 a share, unsolicited takeover offer from Bristol-Myers Squibb (See: Amylin reportedly rejects Bristol-Myers $3.5-bn bid)
Bristol-Myers said that it s now paying nearly $2 billion more than its February offer, since it had then made the offer from whatever information was publicly available on Amylin.