Bristol-Myers Squibb and AstraZeneca expand diabetes alliance

Bristol-Myers Squibb and AstraZeneca have completed the expansion of their long-running diabetes alliance following the finalisation of Bristol-Myers Squibb's Amylin Pharmaceuticals takeover.

The acquisition deal has been completed this week, leading AstraZeneca to pay an initial fee of $3.2 billion (2.05 billion pounds) to Amylin in exchange for rights to incorporate the development and marketing of its diabetes portfolio into the partnership.

Profits and losses arising from the collaboration will be shared equally, while AstraZeneca also intends to exercise its option to acquire certain additional governance rights over key strategic and financial decisions regarding Amylin's portfolio.

Lamberto Andreotti, chief executive officer at Bristol-Myers Squibb, said: "We are pleased to have the opportunity to work together to build on the innovative portfolio, state-of-the art manufacturing facilities and dedicated customer focus that the talented people at Amylin have created."

The companies entered into this collaboration in January 2007 and have worked together to create drugs such as Onglyza, Kombiglyze and the developmental Forxiga, positive phase III trial data for which was published in June 2012.