Here comes BMY with a NEW pile of cash burning a hole in it;s pocket.
Dec 19, 2013 4:09 PM ET
Bristol-Myers Squibb Co. (BMY) will quit the diabetes-treatment business, selling its stake in a venture to partner AstraZeneca Plc (AZN) for as much as $4.3 billion to focus on cancer treatments.
AstraZeneca will pay $2.7 billion upfront and as much as $1.4 billion more depending on regulatory, commercial and sales goals, the companies said today. London-based AstraZeneca also will pay as much as $225 million if some assets are transferred to Bristol-Myers. Future royalty payments may add to the deal’s value.
Bristol-Myers will give up its share of new treatments such as Onglyza and Forxiga to AstraZeneca. While the companies expanded their alliance last year with the $5.3 billion purchase of Amylin Pharmaceuticals Inc., Bristol-Myers said the venture isn’t profitable and the New York-based drugmaker sees more promise in cancer, antiviral and specialty medicines.
“We think the deal makes a lot of strategic sense,” said Mark Schoenebaum, an analyst with International Strategy & Investment Group LLC. “The company is becoming more of a biotech company,” he said in a note to clients today.
yes, I was thinking the same thing when I saw this on FierceBiotech yesterday. They will buy something. Hello, this is Howard Pien from the IMGN BOD, remember that deal we did for Medarex? That worked out pretty well for BMY. I have another deal for you...IMGN.
REGN could float less than 10MM shares and buy, or I would take 1/10's of a share of stock. I think it will eventually be Sanofi, or AMGN and Roche will buy SGEN. LLY would be smart to buy them, their pipeline is really weak. Bayer could buy them, but they are really slow in their decision-making. Sanofi has not mentioned next steps yet, so maybe their next step is acquisition. IMGN can't stay cheap forever unless we are all missing something.
I feel like 2 billion would be a low ball for this, one proven drug, many in pipeline, and the technology/IP. That's an easy 25 dollars per share, and I'd think that 2.5 billion wouldn't be a stretch for a purchaser either- 30 dollars/share.