Replies to post #121331 on Biotech Values

[DewDiligence]

Presumably, damages remain, if AMLN chooses to pursue the issue. Their PR seems to indicate it will.

I’m not sure I agree that LLY’s behavior leaves them liable for damages. How will AMLN demonstrate economic harm from LLY’s relationship with B-I?

[DewDiligence]

LLY sells Byetta and Bydurion back to AMLN:

…the parties will transition full responsibility for the worldwide development and commercialization of exenatide to Amylin, starting in the United States (U.S.) on November 30, 2011, and progressing to all markets by the end of 2013.

…Under the terms of the new global agreement, Amylin will make a one-time, upfront payment to Lilly of $250 million. Amylin will also agree to make future revenue sharing payments to Lilly in an amount equal to 15 percent of global net sales of exenatide products until Amylin has made aggregate payments to Lilly of $1.2 billion plus accrued interest.

Amylin will issue a secured note in the amount of $1.2 billion to Lilly under which any revenue sharing payments made to Lilly will reduce amounts outstanding under the note. If Amylin's investigational once weekly version of exenatide, BYDUREON™ (exenatide extended-release for injectable suspension), has not received U.S. Food and Drug Administration (FDA) approval prior to June 30, 2014, Amylin's revenue sharing obligations will terminate, and Amylin shall thereafter pay Lilly 8 percent of global net sales of exenatide products.

Amylin will also pay a $150 million milestone to Lilly contingent upon FDA approval of a once monthly suspension version of exenatide that is currently in Phase 2.

AMLN recently sued LLY saying that LLY’s new partnership with B-I caused a conflict of interest for LLY’s salesforce (#msg-63176632). Today’s agreement is effectively a settlement of that lawsuit.