Pharmaceutical giant Bristol-Myers Squibb Co. (BMY) late Friday announced it has entered into an agreement to buy fellow pharma company Amylin Pharmaceuticals (AMLN) .
The $5.3 billion purchase, or $31 per share for AMLN, represents about a 10% premium over the stock’s Friday closing price of $28.20. The deal has been approved by both companies’ board of directors.
Amylin is a leading diabetes drug maker, with two new treatments called Byetta and Bydureon. After the deal is completed, Bristol-Myers will collaborate with AstraZeneca (AZN) on the drugs, according to existing deals between AMLN and AZN. AstraZeneca will also pay $3.4 billion to Amylin in pursuant to the deal.
Bristol-Myers CEO Lamberto Andreotti commented, “Amylin’s innovative diabetes portfolio, talented people and state-of-the art manufacturing facility complement our long-standing leadership in metabolics. We are pleased to be able to strengthen the portfolio we have built to help patients with diabetes by building on the success Amylin has had with its GLP-1 franchise. The acquisition of Amylin by Bristol-Myers Squibb is also a unique way for Bristol-Myers Squibb and AstraZeneca to expand the alliance between the two companies, and it demonstrates Bristol-Myers Squibb’s innovative and targeted approach to partnerships and business development.”
Bristol-Myers shares were mostly flat in premarket trading Monday.
The Bottom Line
Bristol-Myers currently offers a 3.78% dividend yield, based on Friday’s closing price of $35.95.
Bristol Myers Squibb Co. (BMY) is a “Recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.