Lilly and Amylin Enter Into Supply Agreement for Exenatide Once Weekly
October 21 2008 - 4:05PM
PR Newswire (US)
Lilly to Pay Amylin $125 Million and Extend $165 Million Line of
Credit to Amylin SAN DIEGO and INDIANAPOLIS, Oct. 21
/PRNewswire-FirstCall/ -- Amylin Pharmaceuticals, Inc.
(NASDAQ:AMLN) and Eli Lilly and Company (NYSE:LLY) today announced
they have entered into a product supply agreement for exenatide
once weekly, a development compound that, if approved, would become
the first once weekly therapy to treat type 2 diabetes. Under terms
of the agreement, Lilly will make an initial cash payment of $125
million to Amylin, and Amylin will supply product for sales in the
U.S. and to Lilly for sales outside of the U.S. In addition to the
$125 million upfront payment, Lilly will reimburse Amylin for its
share of the more than $500 million capital investment in the West
Chester, Ohio facility through the cost of goods sold for exenatide
once weekly. As part of the overall supply arrangement, Lilly will
make available to Amylin a $165 million line of credit that Amylin
can draw upon beginning in the fourth quarter of 2009 through the
second quarter of 2011. Any debt from the credit facility will be
due three years from the date that the full amount has been drawn
or the second quarter of 2014, whichever occurs first. "Amylin and
Lilly continue to strengthen our exenatide alliance, building on
the success of BYETTA(R), our first-in-class medicine that has been
used by approximately 1 million patients worldwide," said John C.
Lechleiter, Ph.D., Lilly's president and chief executive officer.
"With this agreement, we acknowledge Amylin's commitment in making
this important investment to build critical manufacturing
capacity." "The state-of-the art manufacturing facility in Ohio is
readying for full-scale commercial manufacturing of exenatide once
weekly," said Daniel M. Bradbury, president and chief executive
officer of Amylin Pharmaceuticals. "This agreement strengthens our
balance sheet and provides us with financial flexibility in the
future, while moving us closer to our goal of bringing exenatide
once weekly to patients as quickly as possible." About Amylin
Pharmaceuticals Amylin Pharmaceuticals is a biopharmaceutical
company committed to improving lives through the discovery,
development and commercialization of innovative medicines. Amylin
has developed and gained approval for two first-in-class medicines,
SYMLIN(R) (pramlintide acetate) injection and BYETTA(R) (exenatide)
injection. Amylin's research and development activities leverage
the company's expertise in metabolism to develop potential
therapies to treat diabetes and obesity. Amylin is headquartered in
San Diego, California with over 2,000 employees nationwide. Further
information on Amylin Pharmaceuticals is available at
http://www.amylin.com/. About Lilly Through a long-standing
commitment to diabetes care, Lilly provides patients with
breakthrough treatments that enable them to live longer, healthier
and fuller lives. Since 1923, Lilly has been the industry leader in
pioneering therapies to help healthcare professionals improve the
lives of people with diabetes, and research continues on innovative
medicines to address the unmet needs of patients. For more
information about Lilly's current diabetes products visit
http://www.lillydiabetes.com/. Lilly, a leading innovation-driven
corporation, is developing a growing portfolio of first-in-class
and best-in-class pharmaceutical products by applying the latest
research from its own worldwide laboratories and from
collaborations with eminent scientific organizations. Headquartered
in Indianapolis, Indiana, Lilly provides answers -- through
medicines and information -- for some of the world's most urgent
medical needs. Additional information about Lilly is available at
http://www.lilly.com/. This press release contains forward-looking
statements about Amylin and Lilly. Actual results could differ
materially from those discussed or implied in this press release
due to a number of risks and uncertainties, including the risk that
BYETTA and the revenues generated from BYETTA or exenatide once
weekly may be affected by competition; unexpected new data; safety
and technical issues; exenatide once weekly may not be submitted in
a timely manner or receive regulatory approval; or manufacturing
and supply issues including risks that the manufacturing facility
mentioned in this press release will not be completed in a timely
manner or receive regulatory approval. The potential for BYETTA or,
if approved, exenatide once weekly may also be affected by
government and commercial reimbursement and pricing decisions, the
pace of market acceptance, or scientific, regulatory and other
issues and risks inherent in the commercialization of
pharmaceutical products. These and additional risks and
uncertainties are described more fully in Amylin's and Lilly's most
recent SEC filings including their Quarterly Reports on Form 10-Q
and Annual Reports on Form 10-K. Amylin and Lilly undertake no duty
to update these forward-looking statements. P-LLY DATASOURCE:
Amylin Pharmaceuticals, Inc.; Eli Lilly and Company CONTACT:
financial, Michael York, +1-858-458-8602, , or media, Alice Izzo,
+1-858-642-7272, , both of Amylin Pharmaceuticals, Inc.; or Mark E.
Taylor of Eli Lilly and Company, +1-317-276-5795, Web site:
http://www.amylin.com/ http://www.lillydiabetes.com/
http://www.lilly.com/
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