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Bristol-Myers to sell AstraZeneca its stake in diabetes venture
December 19th, 2013
NEW YORK – Bristol-Myers Squibb Co. has agreed to sell its global diabetes business that was part of its collaboration with AstraZeneca.
The company said Thursday that under the agreement, it will receive an upfront payment of $2.7 billion tfrom AstraZeneca, with potential regulatory- and sales-based milestone payments of up to $1.4 billion and will make royalty payments based on net sales through 2025.
In addition, AstraZeneca will make payments of up to $225 million if and when certain assets are transferred. The Bristol-Myers Squibb board has approved the transaction.
Bristol-Myers Squibb and AstraZeneca entered into an alliance agreement in January 2007 to jointly research, develop and commercialize select investigational drugs for type 2 diabetes. The alliance has since been expanded to collaborate on additional diabetes products.
With the deal, Bristol-Myers Squibb will sell its global diabetes business that was part of its collaboration with AstraZeneca, which includes Onglyza (saxagliptin), Kombiglyze XR/Komboglyze (saxagliptin and metformin HCl extended release), dapagliflozin (marketed as Forxiga outside the U.S.), Byetta (exenatide), Bydureon (exenatide extended release for injectable suspension), Symlin (pramlintide acetate) and metreleptin.
The agreement also includes the sale of the former Amylin manufacturing facility in West Chester, Ohio, and covers the future purchase by AstraZeneca of Bristol-Myers Squibb's Mt. Vernon, Indiana, manufacturing facility about 18 months after the closing of the transaction.
"This agreement will allow us to further evolve our business model as a leading specialty biopharma company and increase resources behind the opportunities that drive the greatest long-term value for patients, our company and our shareholders," stated Lamberto Andreotti, chief executive officer of Bristol-Myers Squibb. "Today's announcement puts the diabetes franchise in the capable hands of AstraZeneca and allows us to move to a more simplified operating model consistent with our pipeline and portfolio."
As part of the deal, Bristol-Myers Squibb and AstraZeneca said that expect virtually all Bristol-Myers Squibb employees in the diabetes business to be transferred to AstraZeneca. A number of R&D and manufacturing employees in the venture will remain with Bristol-Myers Squibb to progress the diabetes portfolio and support the transition for these areas, the company said.
Bristol-Myers Squibb and AstraZeneca anticipate that the transaction will close during the first quarter of 2014.