Eli Lilly and Boehringer Ingelheim have announced a deal to jointly develop and market several diabetes products including oral agents and basal insulins.
The companies say the alliance will see the sharing of scientific expertise and business capabilities, with ongoing development costs for agreed compounds shared equally between the two companies.
Lilly already has a broad portfolio in diabetes, with products including Byetta (exenatide), whereas Boehringer are looking to expand into a new therapeutic area with cases of diabetes continuing to expand globally.
The compounds to be developed are all either in mid-stage or late-stage development, and include Boehringer's linagliptin and BI10773, both of which are oral diabetes agents. LY2605541 and LY2963016, two basal insulin analogues owned by Lilly, will also be developed by both companies.
The agreement will see Lilly make a one-off initial payment to Boehringer of €300m, with Boehringer eligible to receive up to €625m in milestone payments during the development and marketing of Boehringer's drugs.
Lilly will in turn be eligible to receive up to $650m from Boehringer following success-based regulatory milestones related to its two basal insulins.
Lilly could also receive up to $525m for milestone payments concerning an anti-TGF-beta monoclonal antibody should Boehringer choose to opt-in to the product's development process.
Dr John C Lechleiter, chairman and CEO, Lilly, commented on the agreement: "For Lilly, this alliance expands our range of offerings for people with diabetes, strengthens our diabetes care capabilities and offers the prospect of near-term revenue opportunities as we address the upcoming loss of patent exclusivity for several of our products."