Pharmaceutical giant AstraZeneca has announced it will acquire the entirety of Bristol-Myers Squibb's interests in the companies' diabetes alliance for an initial consideration of $2.7bn (£1.6bn) on completion and and up to $1.4bn (£850m) in regulatory, launch and sales related payments.
The deal will see AstraZeneca take ownership of the intellectual property and global rights of the diabetes business. AstraZeneca believe the deal will provide a stable for long term growth especially in emerging markets.
Pascal Soriot, Chief Executive Officer of AstraZeneca said:
Diabetes is rapidly becoming a global challenge of epidemic proportions that is expected to affect more than 550m people by 2030. Much of this impact will be felt in emerging markets where AstraZeneca has a strong presence. In recent years we've worked with our alliance partners at Bristol-Myers Squibb to develop an innovative portfolio of non-insulin anti-diabetic medicines that help address the needs of these patients.
It is expected that approximately 4,100 Bristol-Myers Squibb employees in diabetes business, including those at Amylin, will eventually transition to AstraZeneca.
AstraZeneca will eventually become responsible for the manufacturing and supply chain of the full portfolio of diabetes products. The biopharmaceutical business specialises in the discovery, development and commercialisation of prescription medicines. The company operates in over 100 countries.
In 2012, diabetes was estimated to affect more than 370m people worldwide. The prevalence of diabetes is forecast to reach more than 550m by 2030.