BMS sells diabetes stake to partner AstraZeneca
pharmafile | December 19, 2013 | News story | Sales and Marketing | AstraZeneca, BMS, Forxiga, Onglyza, diabetes, komboglyze
AstraZeneca will buy out Bristol-Myers Squibb’s stake in its diabetes alliance in a potential $4.3 billion deal.
AZ will pay an initial $2.7 billion for the deal and up to $1.4 billion in regulatory, launch and sales-related payments.
It has also agreed to pay various sales-related royalty payments up until 2025, and in addition the Anglo-Swedish firm may make payments up to $225 million when certain assets are transferred.
When the deal is done, AstraZeneca will own intellectual property and global rights for the development, manufacture and commercialisation of the diabetes business.
This includes the blockbuster treatment Onglyza (saxagliptin), as well as Komboglyze (saxagliptin and metformin HCl), Forxiga (dapagliflozin) and Byetta (exenatide).
The transaction will mean AZ gains worldwide ownership of the diabetes business, which it hopes will grow its primary and speciality care capabilities and geographical reach, especially in emerging markets.
The agreement “reinforces AstraZeneca’s long-term commitment to patients with diabetes, a core strategic area and an important platform for returning AstraZeneca to growth”, the firm said in a statement.
AstraZeneca and BMS say that around 4,100 BMS employees dedicated to the diabetes business will eventually move over to AstraZeneca.
Over time, AstraZeneca will also become responsible for the manufacturing and supply chain of the full portfolio of diabetes products. BMS will continue to deliver specified clinical trials in line with its ongoing clinical trial plan.
Pascal Soriot chief executive of AstraZeneca, said: “Diabetes is rapidly becoming a global challenge of epidemic proportions that is expected to affect more than 550 million people by 2030. Much of this impact will be felt in emerging markets where AstraZeneca has a strong presence.
“Together with Bristol-Myers Squibb we concluded that consolidating ownership of the diabetes portfolio would benefit both companies and allow us to better serve the needs of diabetic patients.
“This announcement reinforces AstraZeneca’s long-term commitment to diabetes, a core strategic area for us and an important platform for returning AstraZeneca to growth. I would like to extend a warm welcome to the Bristol-Myers Squibb people who are due to join us. My colleagues and I look forward to working with them.”
Ben Adams
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