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. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT