On Monday, April 24, 2023, Eli Lilly announced that it will divest its glucagon product, Baqsimi, to Amphastar, in an effort to expand the supply of this primary and only nasally administered glucagon for the treatment of severe low blood sugar levels in individuals with diabetes.
Amphastar, which already produces and distributes the primary and only generic injectable glucagon product, will find a way to take the production of Baqsimi and supply the dedicated business investment needed to enable more people on insulin to be prepared to treat severe hypoglycemia.
As reported within the press release, the sale of Baqsimi will allow Lilly to give attention to newer, breakthrough treatments for individuals with diabetes.
“Our portfolio of therapies continues to make life higher for individuals with diabetes, and we’ll proceed this vital mission while also increasing our give attention to advancing our pipeline of potential breakthrough treatments,” said Mike Mason, executive vp and president, Lilly Diabetes and Obesity.
The subsequent-generation treatments that Lilly is actively investing and dealing on include a glucose-sensing insulin platform, glucose-responsive insulins that may sense sugar levels within the blood and routinely activate as needed and a once-weekly basal insulin designed to offer a long-acting basal insulin for the treatment of diabetes.
“The acquisition of Baqsimi will integrate our core strategic vision of strengthening our proprietary products profile along with enhancing our diabetes portfolio offering,” said Jack Zhang, PhD, Amphastar’s president and CEO. “We’re optimistic about Baqsimi’s growth potential because it is the primary and only business intranasal glucagon demonstrated to treat low blood sugar emergencies.”
Lilly said they’re working closely with Amphastar to make sure a smooth, successful transition and that patients shouldn’t expect disruptions to produce or their ability to access the medication.
Amphastar can pay Lilly $500 million at closing and a further $125 million on the primary anniversary of the deal’s closing. Lilly can even receive sales-based milestone payments of as much as $450 million after closing.
The divestment transaction is anticipated to shut within the second or third quarter of 2023.
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