IBJNews

Lilly, Amylin agree to end diabetes partnership

Back to TopCommentsE-mailPrintBookmark and Share

Amylin Pharmaceuticals Inc. and Eli Lilly and Co. have agreed to end a decade-long diabetes partnership to resolve litigation between the two drugmakers, the compananies announced Tuesday morning.

Amylin will assume global responsibility for developing the injectable drug Byetta, the companies said in a prepared statement. Amylin, based in San Diego, will make an upfront payment of $250 million to Indianapolis-based Lilly and future revenue-sharing payments of $1.2 billion plus interest.

The drug brought in $559 million for Amylin last year, almost 85 percent of the company’s revenue, according to data compiled by Bloomberg. It accounted for $151 million in sales for Lilly last year. Amylin said it sees the agreement adding to cash flow by the end of 2013

The relationship between the two companies turned sour earlier this year after Lilly teamed with the German company Boehringer Ingelheim to develop diabetes treatments. Amylin sued Lilly over that deal and accused the larger drug company of breaking a commercialization agreement for diabetes drugs.

On behalf of people living with diabetes, the companies determined it was in the best interest of all constituents to amicably terminate the collaboration,” the companies said in the statement.

Shares of Amylin sank more than 15 percent, or $1.70, to $9.23 in midday trading, while Lilly shares climbed 36 cents to $38.71.

The collaboration meant more to San Diego-based Amylin, which only has two products on the market, than it did to the much larger Lilly, said Les Funtleyder, health care portfolio manager for Miller Tabak, which owns Lilly shares.

He noted that the resolution will give Lilly a capital infusion, and he said the company's relationship with Boehringer has more potential to help Lilly, which is facing a loss of revenue from several patent expirations.

Byetta stimulates the pancreas cells to produce insulin when blood sugar is high. It has been approved for patients taking other diabetes medicines and on its own as a therapy with diet and exercise. A long-acting version of the drug sold by the companies is called Bydureon.

Amylin sued Lilly in May, saying the manner in which Lilly plans to implement an agreement to develop and sell Boehringer Ingelheim’s type 2 diabetes drug breached its agreement to develop and commercialize Amylin’s competing drugs.

In June, a federal judge in San Diego denied Amylin’s request for a preliminary order that would have imposed restrictions on Lilly’s diabetes sales force.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT