Bristol-Myers Squibb Buys Amylin, Expands AstraZenca Deal

(National Institutes of Health)

The pharmaceutical company Bristol-Myers Squibb in Princeton, New Jersey will acquire diabetes drug maker Amylin Pharmaceuticals in San Diego, California for $31.00 per share or $5.3 billion. Bristol-Myers Squibb will also expand its current collaboration with pharmaceutical maker AstraZeneca in London developing diabetes drugs, using the assets acquired through Amylin.

Amylin Pharmaceuticals is expected to continue as a subsidiary of Bristol Myers Squibb.  The company is a developer of several drugs to treat diabetes, including glucagon-like peptide 1 (GLP-1) agonists Byetta and Bydureon for type 2 diabetes. These drugs, with the generic name exenatide, stimulates the pancreas to secrete insulin when blood sugar levels are high. Exenatide also slows the emptying of the stomach and causes a decrease in appetite. Both drugs have been approved by the FDA — Byetta in 2005 and Bydureon in January 2012.

Amylin has also developed Symlin (pramlintide acetate), approved by the FDA to treat type 1 and type 2 diabetes, for patients with inadequate glycemic control on meal-time insulin. Metreleptin, an analog of the human hormone leptin for the treatment of diabetes and inherited or acquired lipodystrophy — a rare condition characterized by loss of subcutaneous fat — is still under FDA review.

AstraZeneca and Bristol Myers Squibb first began partnering in 2007 to develop and commercialize two investigational drugs Onglyza (saxagliptin) and dapagliflozin, for the treatment of type 2 diabetes. The companies expect the GLP-1 agonists Byetta and Bydureon from the Amylin acquisition to complement this portfolio.

Under the new deal, AstraZeneca will pay the Amylin subsidiary some $3.4 billion immediately, with profits and losses shared equally between the two companies. AstraZeneca will have the option later on for gaining more governance control over business decisions involving the collaboration.

Read more:

• Five More Pharma Companies Join NIH Drug Extension Project
• Three Drug Makers Partner with NIH to Expand Therapies
• Foundation, Company Partner on Diabetes Clinical Study

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