Bristol-Myers to acquire Amylin

Bristol-Myers Squibb Co. (NYSE:BMY) will spend about $7 billion to acquire Amylin Pharmaceuticals Inc. (NASDAQ:AMLN), including $5.3 billion for Amylin stock and $1.7 billion to pay off the biotech's debt and a contractual obligation. Following the acquisition, BMS will fold Amylin's diabetes portfolio into its existing diabetes deal with AstraZeneca plc (LSE:AZN; NYSE:AZN). In exchange, AstraZeneca will make a $3.4 billion cash payment to BMS's Amylin subsidiary.

BMS is paying $31 per share in cash for Amylin, which is a 10% premium to Amylin's close of $28.20 on Friday before the deal was announced and a 41% premium to BMS's rumored takeover bid of $22 per share in March. The contractual payment obligation is to Eli Lilly and Co. (NYSE:LLY). Last year, Lilly and Amylin terminated a 2002 deal for Amylin's exenatide. ...