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
SOURCE Amylin Pharmaceuticals, Inc.; Eli Lilly and Company
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Related links:
http://www.amylin.com
http://www.lillydiabetes.com http://www.lilly.com
CONTACT:
financial, Michael York, +1-858-458-8602,
michael.york@amylin.com, or media, Alice Izzo, +1-858-642-7272,
alice.izzo@amylin.com, both of Amylin Pharmaceuticals, Inc.; or
Mark E. Taylor of Eli Lilly and Company, +1-317-276-5795,
mark.taylor@lilly.com
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