Amylin Pharmaceuticals and Lilly have entered into a product supply agreement for exenatide once weekly, a compound under development to treat type 2 diabetes. Under terms of the agreement, Amylin will receive an initial cash payment of $125 million and Amylin will supply product for sales in the U.S. and to Lilly for sales outside of the U.S. Lilly will also reimburse Amylin for its share of the $500-plus million capital investment in the West Chester, OH facility through the cost of goods sold for exenatide.
As part of the overall supply pact, Lilly will make available to Amylin a $165 million line of credit that Amylin can draw upon beginning in 4Q09 through 2Q11.
"Amylin and Lilly continue to strengthen our exenatide alliance, building on the success of Byetta, our first-in-class medicine that has been used by approximately 1 million patients worldwide," said John C. Lechleiter, Ph.D., Lilly's president and chief executive officer. "With this agreement, we acknowledge Amylin's commitment in making this important investment to build critical manufacturing capacity."
"The state-of-the art manufacturing facility in Ohio is readying for full-scale commercial manufacturing of exenatide once weekly," said Daniel M. Bradbury, president and chief executive officer of Amylin Pharmaceuticals. "This agreement strengthens our balance sheet and provides us with financial flexibility in the future, while moving us closer to our goal of bringing exenatide once weekly to patients as quickly as possible."