NEW YORK — Bristol-Myers Squibb Co. on Monday announced that it has completed the previously announced sale of its global diabetes business to AstraZeneca.
Bristol-Myers Squibb received from AstraZeneca a payment of approximately $2.7 billion in connection with the closing, and will receive by mid-February, a $600 million milestone payment from the recent U.S. approval of Farxiga (dapagliflozin). Under terms of the agreement, Bristol-Myers Squibb also will receive from AstraZeneca potential regulatory and sales-based milestone payments of up to $800 million, and royalty payments based on net sales through 2025.
In addition, AstraZeneca will make payments of up to $225 million if and when certain assets are subsequently transferred.
The transaction includes the rights to Bristol-Myers Squibb’s global diabetes business that was part of its collaboration with AstraZeneca, the former Amylin manufacturing facility in West Chester, Ohio, and also covers the future purchase by AstraZeneca of Bristol-Myers Squibb’s Mount Vernon, Indiana, manufacturing facility, no earlier than 18 months following the closing date.