BY Fraser Tennant
In an effort to continue expanding the availability of diabetes drug Baqsimi to patients, US pharmaceutical company Eli Lilly and Company is to divest the drug to Amphastar Pharmaceuticals, Inc. in a transaction worth up to $1.08bn.
Under the terms of the definitive agreement, Amphastar will pay Lilly $500m in cash at closing and an additional $125m in cash upon the one-year anniversary of closing. Eli Lilly is also eligible to receive sales-based milestone payments of up to $450m in aggregate.
Launched by Eli Lilly in 2019 as an option to quickly render aid in rescue situations for people with diabetes who take insulin, Baqsimi is currently available in 27 international markets, with worldwide sales totalling $139.3m in 2022. It is the first and only nasally administered glucagon for the treatment of severe hypoglycaemia in people with diabetes.
“Our portfolio of therapies continues to make life better for people with diabetes, and we will continue this important mission while also increasing our focus on advancing our pipeline of potential breakthrough treatments,” said Mike Mason, executive vice president of Eli Lilly & Company. “Baqsimi’s positive impact has been felt by people with diabetes around the globe and we are working closely with Amphastar to facilitate a successful transition and consistent patient experience.”
The transaction has been approved by the boards of directors of both companies.
“The acquisition of Baqsimi will integrate our core strategic vision of strengthening our proprietary products profile in addition to enhancing our diabetes portfolio offering,” said Jack Zhang, president and chief executive of Amphastar. “We are optimistic about Baqsimi’s growth potential as it is the first and only commercial intra-nasal glucagon demonstrated to treat low blood sugar emergencies.”
A global pharmaceutical company focused on developing, manufacturing and marketing injectable, intranasal and inhalation products, including experience with a glucagon product, Amphastar expects to provide dedicated commercial investment for Baqsimi with the goal of enabling more people on insulin to be prepared with a glucagon rescue treatment for severe hypoglycaemia.
The transaction is not subject to any financing conditions and is expected to close in the second or third quarter of 2023, subject to the satisfaction of customary closing conditions.
News: Eli Lilly to sell low blood sugar drug to Amphastar for around $1 billion