Billion dollar diabetes joint venture

A major development deal has been agreed between two leading diabetes firms. Together, the two companies will make and market two new experimental drugs to treat type 2 diabetes, in a deal that is reputed to be worth $1.35 billion.
AstraZeneca Plc will pay Bristol-Myers Squibb Co in instalments, starting off with an upfront payment of $100 million, and followed by development milestones as the drugs progress. Bristol-Myers will benefit enormously from the deal because AstraZeneca have a much better sales force when it comes to primary care doctors. AstraZeneca themselves are in need of new products, following patent challenges to some of its established brands.
An analyst at Code Nomura, Mike Ward, said: “This makes sense from both companies’ point of view.” The deal involves an advanced medicine made by Bristol-Myers known as Saxagliptin. This operates in a similar manner to Januvia, and is apparently approaching regulatory approval. The news could have positive benefits for diabetic patients throughout the world, as the next generation of diabetes drugs become reality.