Bristol-Myers Squibb will pay $5.3bn for Amylin Pharmaceuticals in a move that furthers it and partner AstraZeneca’s efforts in diabetes and may herald next wave of Pharma consolidation.
The deal – which was approved by both firms boards last week – was prompted by “Amylin’s innovative diabetes portfolio, talented people and state-of-the art manufacturing facility complement our long-standing leadership in metabolics,” according to Lamberto Andreotti, Bristol-Myers Squibb (B-MS) CEO.
Simon Lowth, interim CEO of B-MS’ diabetes partner AstraZeneca, was similarly positive. He suggested that: “This is a compelling proposition that will have an immediate positive impact on revenues and is fully in line with our stated partnering strategy to enhance top-line growth and strengthen our late stage pipeline.”
Others have set the takeover in the context of dwindling development pipelines and recent rejections by regulators – notably B-MS’ dapagliflozin which failed to win US Food and Drug Administration (FDA) approval earlier this year.
Seamus Fernandez, of Leerink Swann & Co suggested that the deal may be the start of the next round of industry consolidation, telling Business Week that: “We are on the cusp of the next consolidation wave,” adding that “there just isn’t enough top-line growth in the industry.”