Eli Lilly and Co (NYSE:LLY) revealed that it will sell Baqsimi, its nasal treatment for severe hypoglycemia in people with diabetes, to Amphastar Pharmaceuticals Inc (NASDAQ:AMPH) for around $1 billion.
The Indianapolis, Indiana-based company has signed a definitive agreement to divest Baqsimi worldwide to Amphastar for $500 million in cash at closing and an additional $125 million in cash upon the one-year anniversary of closing. Lilly is also eligible to receive sales-based milestone payments of up to $450 million in aggregate.
Investors initially sent Eli Lilly stock up, but it was down nearly 0.8% to $382.35 at noon.
Baqsimi, the only nasally administered glucagon for the treatment of severe hypoglycemia in people with diabetes, was launched by Lilly in 2019. It generated $139.3 million in worldwide sales last year, according to Eli Lilly and is available in 27 countries.
Amphastar expects to provide “dedicated investment” for Baqsimi with the goal of enabling more people on insulin to have a glucagon rescue treatment for severe hypoglycemia.
"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 Diabetes and Obesity President Mike Mason said in a statement.
"The acquisition of Baqsimi will integrate our core strategic vision of strengthening our proprietary products profile in addition to enhancing our diabetes portfolio offering,” added Amphastar CEO Jack Zhang.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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