Lilly, Amylin terminate diabetes alliance
SAN DIEGO — Eli Lilly and Amylin Pharmaceuticals are ending their diabetes-drug alliance, the two companies said Tuesday.
Indianapolis-based Lilly and San Diego-based Amylin said they would terminate their alliance concerning exenatide, the active ingredient in the injected diabetes drug Byetta and its long-acting version, Bydureon, currently under investigation.
As part of the agreement, Amylin will take full responsibility for worldwide development and commercialization of exenatide, starting in the United States on Nov. 30, and progressing to all other markets by the end of 2013. The companies also will resolve a lawsuit that Amylin filed earlier this year in response to a diabetes drug-development partnership between Lilly and Boehringer Ingelheim.
In addition, Amylin will pay $250 million upfront to Lilly and revenue-sharing payments equal to 15% of global net sales on exenatide products, up to $1.2 billion plus accrued interest. Amylin's revenue-sharing agreement will terminate if Bydureon doesn't receive Food and Drug Administration approval by June 30, 2014, and Amylin will thereafter pay Lilly 8% of global net sales on exenatide products. Amylin also will make a milestone payment of $150 million to Lilly if the FDA approves a once-monthly formulation of exenatide, which currently is in phase-2 clinical trials.