Lilly to sell hypoglycemia drug BAQSIMI to Amphastar Pharmaceuticals
Eli Lilly and Company (Lilly) has agreed to sell its severe hypoglycemia drug BAQSIMI to Amphastar Pharmaceuticals in a deal potentially worth up to $1.07 billion.
BAQSIMI is indicated for the treatment of severe hypoglycemia, which is very low blood sugar, in people with diabetes aged four years and over. It is the first as well as the only nasally administered glucagon for the condition.
Amphastar Pharmaceuticals is a US-based bio-pharma company engaged mainly in generic and proprietary injectable, inhalation, and intranasal products.
According to Lilly, the deal enables it to focus on delivering its pipeline of next-generation therapies to patients, and Amphastar Pharmaceuticals is the appropriate company to continue its mission to see more people access BAQSIMI.
Lilly to sell hypoglycemia drug BAQSIMI to Amphastar Pharmaceuticals. Photo courtesy of Momoneymoproblemz/Wikimedia Commons.
Mike Mason — executive vice president and president of Lilly Diabetes and Obesity said: “Our portfolio of therapies continues to make life better for people with diabetes, and we will continue this important mission while also increasing our focus on advancing our pipeline of potential breakthrough treatments.
“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.”
Lilly launched the severe hypoglycemia drug in 2019 as an option to render aid quickly in rescue situations for diabetic people who take insulin.
Presntly available in 27 international markets, BAQSIMI earned $139.3 million in sales in 2022.
Amphastar Pharmaceuticals is expected to give dedicated commercial investment for BAQSIMI with the aim to enable more patients on insulin to be prepared with a glucagon rescue treatment for very low blood sugar condition.
As per the terms of the deal, Amphastar Pharmaceuticals will make a cash payment of $500 million at the closing of the deal. Upon the first anniversary of the closing, the biopharma company will pay an additional $125 million in cash.
Additionally, Lilly is entitled to get milestone payments based on sales of up to $450 million.
Jack Zhang — Amphastar Pharmaceuticals president and CEO 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 intra-nasal glucagon demonstrated to treat low blood sugar emergencies.”
The deal, which is subject to customary conditions, is likely to be wrapped up in Q2 or Q3 of this year.