Amylin Pharmaceuticals, which develops a handful of diabetes treatment medications, was purchased by Bristol-Myers Squibb Co. for a staggering $5 billion in cash. The buyout comes about a month after FDA approval for generic versions of Bristol-Myers’ blood thinner Plavix was announced, indicating that the company is looking to make some changes to its trajectory. The aforementioned drug, the patents for which just recently expired, is the second best-selling medication in the entire world.

Once the deal has been signed and the ink has dried, Bristol-Myers will enter into an agreement with AstraZeneca to develop and distribute Amylin’s diabetes medication. AstraZeneca will pay Bristol-Myers roughly $3.4 billion in cash for the honor, with both companies sharing portions of the profits and loses. As a result of the deal, Bristol-Myers claims that their 2012-2013 earnings will be hurt by as much as three cents per share.

If you’ve heard of Bristol-Myers but simply cannot place the name, the company is responsible for developing such popular medications as Abilify, Coumadin, and Onglyza, the latter of which is used to treat type 2 diabetes. According to the Centers for Disease Control and Prevention, over 25 million people living in the United States are presently suffering from a form of diabetes. On a global scale, the disease is thought to affect nearly 280 individuals, which has forced drugmakers to turn their attention to developing additional treatment.

In March, Bristol-Myers offered to purchase Amylin for $22 dollars a share, though the bid was ultimately rejected by the company. Under the terms of the recently-inked deal, Amylin will receive $33 dollars per share. When you add in the company’s debt and a payment to their former partner Eli Lilly & Co., the Bristol-Myers deal is said to be worth over $7 billion.