Eli Lilly, BI Revise Diabetes Alliance

Boehringer Ingelheim and Eli Lilly and Company are changing the operational and financial structure of their diabetes alliance in certain countries. Under the revised agreement, 17 countries representing more than 90% of the alliance’s anticipated market opportunity will continue their co-promotion work. In all other countries, the companies will exclusively commercialize the respective molecules they brought to the alliance.

The changes will be implemented starting January 1, 2015. The scope of the alliance will remain unchanged in the following 17 countries: United States, Germany, Italy, Spain, France, United Kingdom, Republic of Ireland, Portugall, Canada, China, New Zealand, Taiwan, and Mexico.

Under a revised agreement, Boehringer Ingelheim and Lilly will exclusively commercialize the respective molecules they brought to the alliance in all other countries under revised financial terms that will include an upfront payment and ongoing payments paid to Lilly in lieu of commission payments in those markets. Lilly plans to communicate the impact to its 2014 financial guidance in its third quarter Form 10-Q report to the US Securities and Exchange Commission.

To date, three new treatments for diabetes have been launched by the alliance: Trajenta (linagliptin), Jardiance (empagliflozin), and Jentadueto (linagliptin/metformin HCI). Additionally, the alliance’s new insulin glargine product has been tentatively approved in the US and approved in Europe. Other potential treatments, including fixed-dose combinations, continue to be developed by the alliance. The company formed their diabetes alliance in January 2011.

Source: Eli Lilly and Company

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