AstraZeneca buys out Bristol in diabetes alliance for up to 4.1bn dollars

19th Dec 2013 09:15

- 2.7bn dollars on completion, 1.4bn in future payments- Provides 'platform for returning AstraZeneca to growth', says CEOAstraZeneca is to spend up to 4.1bn dollars for Bristol-Myers Squibb's stake in their diabetes joint venture, giving the British pharmaceuticals company full ownership of a large portfolio of products.Astra will pay Bristol-Myers Squibb an initial consideration of $2.7bn on completion and up to $1.4bn in regulatory, launch and sales-related payments. Royalties will also be paid to the American firm up until 2025. It intends to finance the transaction from existing cash resources and short-term credit facilities.The buy-out, which will see 4,100 Bristol-Myers Squibb employees transfer to Astra, will give it the complete intellectual property and global rights for the development, manufacture and commercialisation of the diabetes business, which includes Onglyza, Kombiglyze, Komboglyze, Forxiga, Byetta, Bydureon, metreleptin and Symlin.Chief Executive Pascal Soriot said that the deal "reinforces AstraZeneca's long-term commitment to diabetes, a core strategic area for us and an important platform for returning AstraZeneca to growth".The deal is expected to have no impact on results for 2013 and will be neutral to core earnings per share in 2014.The stock was 1.01% higher at 3,596p by 10:01 on Thursday.BC