Eli Lilly will sell its low blood sugar drug Baqsimi to Amphastar Pharmaceuticals in a deal worth over $1bn, the two companies announced.
Under the terms of the definitive agreement, Amphastar will pay Lilly $500m at closing and an additional $125m after one year, with Lilly also eligible to receive sales-based milestone payments of up to $450m.
Baqsimi is the first and only nasally administered glucagon to treat severe hypoglycaemia – very low blood sugar – in diabetes patients aged four years and above.
Classed as a diabetic emergency, severe hypoglycaemia is a complication that can occur in diabetes patients who take insulin and certain anti-diabetic tablets.
The condition is characterised by altered mental or physical functioning, including confusion and disorientation, convulsions, loss of consciousness and coma.
Lilly launched Baqsimi in 2019 and it is currently available in 27 international markets, with worldwide sales totalling over $139m in 2022.
Amphastar, which is focused on developing, manufacturing and marketing injectable, intranasal, and inhalation products, said it expects to provide “dedicated commercial investment” to expand access to the rescue treatment.
Jack Zhang, president and chief executive officer of Amphastar, said: “The acquisition of Baqsimi will integrate our core strategic vision of strengthening our proprietary products profile in addition to enhancing our diabetes portfolio offering.
“We are optimistic about Baqsimi’s growth potential as it is the first and only commercial intranasal glucagon demonstrated to treat low blood sugar emergencies.”
Mike Mason, executive vice president and president, Lilly Diabetes and Obesity, said: “Baqsimi’s positive impact has been felt by people with diabetes around the globe and we’re working closely with Amphastar to facilitate a successful transition and consistent patient experience.”
Mason added that the company will continue its work on treatments for diabetes, with an increasing focus on advancing its pipeline of “potential breakthrough treatments”.
The move comes just over a month after Lilly announced a 70% cut to the US prices of its most commonly prescribed insulins, Humalog and Humulin.
The company will also lower the US price of its non-branded insulin, Lispro, to $25 a vial and expand its insulin value programme to cap out-of-patient costs at $35 or less per month.
Similar moves followed from Novo Nordisk and Sanofi, which announced similar US price cuts to their respective insulin products.