Lilly, Boehringer Ingelheim Re-Work AgreementPosted: Updated:
Indianapolis-based Eli Lilly and Co. (NYSE: LLY) has announced a revised agreement with a major global partner. The new deal with Boehringer Ingelheim involves commercialization in a smaller number of international markets where the companies do co-promotion work. October 29, 2014
INDIANAPOLIS, Ind. and INGELHEIM, Germany - In a move that will strengthen their alliance by enhancing efficiencies and enabling greater focus on product launches, Boehringer Ingelheim and Eli Lilly and Company (NYSE: LLY) are changing the operational and financial structure of their diabetes alliance in certain countries. Under the revised agreement, 17 countries representing more than 90 percent 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, Portugal, Canada, Japan, China, Australia, New Zealand, South Korea, Taiwan, Brazil, 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 U.S. Securities and Exchange Commission.
"Lilly and Boehringer Ingelheim have a highly successful alliance," said Enrique Conterno, president, Lilly Diabetes. "In less than four years, our companies have worked to develop and introduce several new important treatments for diabetes. The revised agreement will bring greater focus and clarity to our alliance and will benefit health care professionals, patients, and our companies. We look forward to continuing our important work together that makes life better for people with diabetes."
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 U.S. and approved in Europe. Other potential treatments, including fixed-dose combinations, continue being developed by the alliance.
"As our alliance continues to evolve, and with more medicines receiving approval by regulators, we have determined that enhancements are needed to reduce operational complexities in certain countries around the world," said Dr Ulrich Drees, corporate senior vice president, International Project Management, Boehringer Ingelheim. "By continuing our work under this revised model, our companies can better focus on the important task of delivering innovative solutions to patients."
Boehringer Ingelheim and Eli Lilly and Company
In January 2011, Boehringer Ingelheim and Eli Lilly and Company announced an alliance in diabetes that centers on compounds representing several of the largest diabetes treatment classes. The alliance leverages the strengths of two of the world's leading pharmaceutical companies. By joining forces, the companies demonstrate commitment in the care of patients with diabetes and stand together to focus on patient needs. Find out more about the alliance at www.boehringer-ingelheim.com or www.lilly.com.
About Boehringer Ingelheim
The Boehringer Ingelheim group is one of the world's 20 leading pharmaceutical companies. Headquartered in Ingelheim, Germany, Boehringer Ingelheim operates globally with 142 affiliates and a total of more than 47,400 employees. The focus of the family-owned company, founded in 1885, is researching, developing, manufacturing and marketing new medications of high therapeutic value for human and veterinary medicine.
Taking social responsibility is an important element of the corporate culture at Boehringer Ingelheim. This includes worldwide involvement in social projects, such as the initiative "Making More Health" and caring for the employees. Respect, equal opportunities and reconciling career and family form the foundation of the mutual cooperation. In everything it does, the company focuses on environmental protection and sustainability.
In 2013, Boehringer Ingelheim achieved net sales of about 14.1 billion euros. R&D expenditure corresponds to 19.5 percent of its net sales.
For more information please visit www.boehringer-ingelheim.com.
About Lilly Diabetes
Lilly has been a global leader in diabetes care since 1923, when we introduced the world's first commercial insulin. Today we are building upon this heritage by working to meet the diverse needs of people with diabetes and those who care for them. Through research and collaboration, a broad and growing product portfolio and a continued determination to provide real solutions—from medicines to support programs and more—we strive to make life better for all those affected by diabetes around the world. For more information, visit www.lillydiabetes.com.
About Eli Lilly and Company
Lilly is a global healthcare leader that unites caring with discovery to make life better for people around the world. We were founded more than a century ago by a man committed to creating high-quality medicines that meet real needs, and today we remain true to that mission in all our work. Across the globe, Lilly employees work to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and volunteerism. To learn more about Lilly, please visit us at www.lilly.com and newsroom.lilly.com/social-channels.
Source: Eli Lilly and Co.