Lilly to Pay Amylin $125 Million and Extend $165 Million Line of Credit to
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.
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.
|SOURCE Amylin Pharmaceuticals, Inc.; Eli Lilly and Company|
Copyright©2008 PR Newswire.
All rights reserved