Amylin, Bristol-Myers deal

Bristol-Myers Squibb will spend about $7 billion to acquire Amylin, 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, Bristol-Myers will fold Amylin's diabetes portfolio into its diabetes deal with AstraZeneca plc (LSE:AZN; NYSE:AZN, London, U.K.). In exchange, AstraZeneca will make a $3.4 billion cash payment to Bristol-Myers' Amylin subsidiary.

Bristol-Myers is paying $31 per share in cash for Amylin, which is a 10% premium to Amylin's close of $28.20 on June 29, before the deal was announced, and a 41% premium to Bristol-Myers' rumored takeover bid of $22 per share in March. The contractual payment obligation is to Eli Lilly and Co. (NYSE:LLY, Indianapolis, Ind.). Last year, Lilly and Amylin terminated a 2002 deal for Amylin's exenatide (see BioCentury, Nov. 14, 2011). ...