AstraZeneca and Bristol-Myers complete diabetes alliance expansion; Lilly revises guidance

Anglo-Swedish drug major AstraZeneca (LSE: AZN) said yesterday that, following Bristol-Myers Squibb’s (NYSE: BMY) completion of the acquisition of Amylin Pharmaceuticals (The Pharma Letter July 2), it has made an initial payment of about $3.2 billion to Amylin, now a wholly-owned subsidiary of B-MS. The move also resulted in US drug major Eli Lilly (NYSE: LLY) to revise its guidance as a result of early payment of financial obligations to Amylin.

As previously disclosed, the payment is being made in connection with the expansion of the diabetes alliance between AstraZeneca and B-MS to incorporate the development and marketing of Amylin’s portfolio of diabetes products, and profits and losses arising from the collaboration will be shared equally.

AZ will exercise additional option