NEW YORK ( TheStreet) -- Bristol-Myers Squibb ( BMY) announced late Friday that it's purchasing diabetes drugmaker Amylin Pharmaceuticals ( AMLN) in a deal valued at about $7 billion. In a news release, the companies said Bristol-Myers will pay $31.00 a share in cash for San Diego-based Amylin. That adds up to about $5.3 billion. Including Amylin's net debt and a payment obligation to Eli Lilly & Co. ( LLY), however, the deal's total value rises to about $7 billion, the companies said. The purchase price offers a 9.9% premium of to Amylin's closing share price Friday of $28.20. The boards of Bristol-Myers and Amylin have approved the transaction. In addition, following the consummation of the deal, New York-based Bristol-Myers plans expand its diabetes partnership with AstraZeneca PLC ( AZN). The companies will collaborate on developing and marketing Amylin's portfolio of drugs. AstraZeneca will pay Bristol-Myers Squibb approximately $3.4 billion in cash, and the two partners will split profits and losses from the collaboration. Shares of Bristol-Myers Squibb closed Friday up 87 cents at $35.95. Shares of AstraZeneca ended the session up 36 cents at $44.75.