Boehringer Ingelheim and Lilly have agreed new terms for their diabetes alliance, with each partner to take exclusive control of its own product candidates in more than 50 countries.
The companies said the changes, which will take effect from January, would “enhance efficiencies and enable greater focus on product launches” to their alliance.
Ulrich Drees, corporate senior VP of international project management at Boehringer, said: 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.
“By continuing our work under this revised model, our companies can better focus on the important ask of delivering innovative solutions to patients.”
Boehringer and Lilly were keen to stress that the changes would only have a limited effect on their alliance.
Seventeen countries – including the US, China, Japan and the top-five European markets – remain unaffected by the changes, together representing more than 90% of the alliance’s project market opportunity.
Enrique Conterno, president of Lilly Diabetes, said: “Lilly and Boehringer Ingelheim have a highly successful alliance. 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.”
The changes will see Boehringer take back the rights to the oral candidates – Trajenta (linagliptin), Jardiance (empagliflozin) and Jentadueto (linagliptin/metformin HCI) – it brought to the alliance in 2011.
Lilly meanwhile will regain rights in the 50 unspecified countries to LY2605541 and LY2963016, the two basal insulin analogues it contributed at the partnership’s formation.
Under the revised agreement, the companies will exclusively commercialise their respective molecules under revised financial terms that will include upfront and ongoing payments from Boehringer to Lilly in lieu of commission payments in those markets.