By: Jan Chait
Eli Lilly and Company of Indianapolis, Indiana, and Amylin Pharmaceuticals of San Diego, California, have formed a global agreement to collaborate on development and sale of a potential new treatment for type 2 diabetes.
The treatment, now in phase 3 clinical trials, is called AC2993, a peptide that has been shown to stimulate insulin secretion when blood glucose concentrations are high, but not when blood glucose levels are low, according to information from Amylin.
Under the terms of the agreement, Lilly will make an initial nonrefundable investment of $80 million; will purchase $30 million of Amylin common stock at a price of $18.69 per share; and will, in the future, pay Amylin up to $85 million at certain milestones in the development of the product. Lilly also will pay up to $130 million contingent on global sales of the product.
For a limited time before the potential sale of AC2993, Amylin will co-promote Humatrope, Lilly’s recombinant human growth hormone, in the United States.
A submission to the U.S. Food and Drug Administration for AC2993 is expected as early as 2004.