The related deals between Bristol-Myers Squibb Co. and Otsuka Pharmaceutical Co. Ltd. announced April 6 appear to be a win for both sides. [See Deal] They extend and update a highly successful 10-year-old collaboration, essentially tweaking the original agreement’s terms in consideration of each partner’s current needs. [See Deal] At the same time, they recognize that the key product involved, the antipsychotic medication Abilify (aripiprazole), is reaching maturity.
Unlike many growth-oriented deals, this one centers on alleviating mid-term risks overhanging each company by bulking up existing financials. It...