AstraZeneca has paid approximately $3.2 billion to extend its diabetes alliance with Bristol-Myers Squibb (BMS), following BMS’s recently completed acquisition of Amylin Pharmaceuticals. The payment, made to Amylin, ensures that AstraZeneca will have an equal share in any profits arising from the diabetes alliance, which is focusing on various drugs from Amylin, AstraZeneca, and BMS.

According to a statement, the incoporation of Amylin’s glucagon-like peptide-1 (GLP-1) franchise of diabetes drugs will provide a broader platform of potential treatments for diabetes.

AstraZeneca also added that it intends to exercise its option to acquire additional governance rights over key strategic and financial decisions regarding Amylin’s product portfolio. Exercise of this option will entail AstraZeneca paying an additional $135 million to BMS. The collaboration arrangements have been approved by the boards of directors of both BMS and AstraZeneca.

AstraZeneca and BMS entered into a collaboration in 2007 to jointly research, develop, and commercialize potential treatments for Type II diabetes. The expansion of the agreement now covers the codevelopment and marketing of Amylin’s product portfolio, including Byetta (exenatide), Bydureon (exenatide extended-release and exenatide 2 mg powder and solvent for prolonged release), Symlin (pramlintide acetate), and investigational leptin analogue called metreleptin, which is currently under review by FDA.

BMS announced the completed acquisition on Aug. 9, 2012. The company was acquired for $31 per share or an aggregate pruchase price of around $5.3 billion.