HQ Team
April 25, 2023: Eli Lilly sold its sugar-controlling drug to Amphastar Pharmaceuticals for $1.07 billion.
The Baqsimi drug treats hypoglycemia and is the only nasally-administered drug for people with diabetes.
Amphastar will pay Lilly $500 million in cash at closing and an additional $125 million in cash within a year, according to an Eli Lilly statement.
Eli Lilly will receive sales-based milestone payments of up to $450 million. The transaction is expected to close in the second or third quarter of 2023.
Liilly unveiled Baqsimi in 2019 as an option to render aid in rescue situations for people with diabetes who take insulin. It is currently available in 27 international markets. Worldwide sales for the medicine totaled $139.3 million in 2022.
“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, and president, of Lilly Diabetes and Obesity.
Dedicated investment
Amphastar is expected to provide dedicated commercial investment for the medicine used to treat very low blood sugar in people with diabetes ages four years and above.
“Baqsimi’s positive impact has been felt by people with diabetes around the globe and we’re working closely with Amphastar to facilitate a successful transition and consistent patient experience,” Mr. Mason said.
Jack Zhang, Amphastar’s president and CEO, said: “The acquisition of Baqsimi will integrate our core strategic vision of strengthening the profile of our proprietary products in addition to enhancing our diabetes portfolio offering. 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.”
6.7 million deaths
Glucagon is a hormone produced by the pancreas that raises the concentration of glucose and fatty acids in the bloodstream. The injectable form of glucagon has been approved for use in the US for several decades.
According to the joint statement, proceeds of Amphastar’s senior credit facilities will be used with cash on hand to fund a portion of the purchase price payable at closing.
Amphastar is a biopharmaceutical company focusing primarily on developing, manufacturing, marketing, and selling generic and proprietary injectable, inhalation, and intranasal products.
About 537 million, or one in ten, had diabetes in 2021. This number is expected to rise to 643 million by 2030 and 783 million by 2045, according to International Diabetes Federation. Diabetes caused 6.7 million in 2021.
