Locemia Solutions ULC

Eli Lilly agreed to sell global rights to Baqsimi (glucagon) to Amphastar Pharmaceuticals under a deal potentially worth over $1 billion, the companies announced Monday. Eli Lilly said the divestment, which is expected to close in the second or third quarter, will allow it to focus on its pipeline of next-generation diabetes treatments.Baqsimi, a nasally administered formulation of rescue glucagon was first launched in 2019, including in the US, for the treatment of severe hypoglycaemia in people with diabetes ages four years and above. Eli Lilly gained the therapy from Locemia Solutions in 2015 – when it was in Phase III development – for an undisclosed fee.As part of the deal, Eli Lilly will receive $500 million in cash from Amphastar, along with $125 million upon the one-year anniversary of closing. In addition, Eli Lilly is eligible to receive sales-based milestone payments of up to $450 million. Baqsimi, which is currently sold in 27 markets, generated total sales of $139.3 million last year."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, remarked Amphastar CEO Jack Zhang. The company said that it will provide "dedicated commercial investment" for the product.Eli Lilly currently markets a number of insulin products for diabetes, including Humalog (insulin lispro) and Humulin (insulin human), while its pipeline includes the long-acting basal insulin LY3209590, the GLP-1 receptor agonist orforglipron and the GIP/GLP-1/glucagon receptor agonist retatrutide.