AstraZeneca has agreed to buy Bristol-Myers Squibb's stake in the companies' diabetes joint venture for up to $4.1 billion in a deal that will help return the group to growth, sending its shares to a new high.
AstraZeneca said on Thursday that it would pay Bristol an initial $2.7 billion plus up to $1.4 billion in additional regulatory and sales-related payments.
The move will bulk up AstraZeneca's thin drug portfolio and give Bristol more funds to invest in other areas, such as cancer, where it is developing promising therapies tapping into the immune system.
Following the announcement shares in AstraZeneca hit an 11-year high in early morning trading before paring earlier gains to trade up 1 percent at 3,595 pence by 0935 GMT.
Speculation that AstraZeneca might look to buy out Bristol was fuelled last month when the U.S.-based company decided to get out of diabetes research.
Source: Reuters
