Bristol-Myers Squibb, AstraZeneca/Amylin

Target: Amylin Pharma ($AMLN)
Buyer: Bristol-Myers Squibb ($BMY)/AstraZeneca ($AZN)
Price: $7 billion
Closed: Aug. 9, 2012

This deal gets the prize as the most complex, with Bristol-Myers Squibb and AstraZeneca teaming up to make the play. BMS paid shareholders about $5.3 billion. On top of that, it paid $1.7 billion for debt assumption and a payoff to Amylin partner Eli Lilly ($LLY). When the deal closed, AstraZeneca ponied up $3.4 billion to Bristol-Myers to beef up their current diabetes-drug alliance and to get a greater say in that partnership.

So what was compelling enough about Amylin that commanded a 95% premium? First there is its franchise in diabetes, a treatment category that is expected to be one of the fastest growing in coming years. Amylin's Byetta and Bydureon got added to the AZ and BMS alliance portfolio of Onglyza, two Onglyza combo pills, and Forxiga, which the EU approved a month after the deal closed.

To some analysts' thinking, the Amylin buy gives the partnership more product to push through an established sales force already familiar with the territory. That should mean more revenue at very little added expense. Some analysts believe there is a fair amount of growth for Byetta and Bydureon, given the pumped-up sales support they will get.

Bristol-Myers Squibb, AstraZeneca/Amylin

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