AstraZeneca to buy out BMS from diabetes joint venture

AstraZeneca has announced an agreement to acquire the entirety of Bristol-Myers Squibb’s interests in the companies’ diabetes alliance. The deal consists of an initial payment of $2.7 billion on completion and up to $1.4 billion in regulatory, launch and sales-related payments.

Upon completion, AstraZeneca will own intellectual property and global rights for the development, manufacture and commercialisation of the diabetes business. The transaction will consolidate worldwide ownership of the diabetes business, leveraging AZ’s primary and specialty care capabilities and its 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.

According to Reuters, “the move will bulk up AstraZeneca’s thin drug portfolio and give Bristol more funds to invest in other areas, such as cancer, where it is developing promising therapies tapping into the immune system.”