Eli Lilly is bidding adieu to Baqsimi, its nasal powder rescue treatment for severe hypoglycemia, or very low blood sugar, in diabetes patients.
In a deal with California’s Amphastar, Lilly has decided to sell its drug for $500 million in cash upfront. Amphastar is also on the hook for an additional $125 million in cash upon the one-year anniversary of the deal’s close. Further, Lilly is in line to receive sales-based milestones worth up to $450 million, the companies said Monday.
The sale is expected to close in the third quarter of 2023.
The move comes after Eli Lilly slashed prices on a range of insulins and as it focuses on its newest Type 2 diabetes offering Mounjaro.
Amphastar has a global presence developing, manufacturing and selling injectables, intranasal drugs and inhalation products, including a glucagon product, the companies explained in a release. Amphastar plans to pitch in “dedicated commercial investment for Baqsimi” on its mission to help more insulin users be prepared with a glucagon rescue treatment for severe hypoglycemia.
Lilly, for its part, says it will continue to focus on treatments for diabetes, with an increasing focus on its pipeline, Mike Mason, Lilly’s executive vice president and president of diabetes and obesity, said in a statement.
Baqsimi hit the market in 2019 and is now on tap in 27 international markets, Lilly said. The drug generated $139.3 million in global sales last year.
Meanwhile, Lilly recently garnered attention—and public applause—after it spearheaded an insulin price-capping campaign that eventually swept up diabetes rivals Novo Nordisk and Sanofi.
In early March, Lilly announced it would slash the cost of its most commonly prescribed insulins by 70%. The company also expanded its insulin value program to cap out-of-patient costs at $35 or less per month.
These days, much of Lilly’s diabetes momentum is tied to Mounjaro—its dual GIP/GLP-1 med angling to rival Novo’s lucrative semaglutide franchise. Aside from the drug’s approved Type 2 diabetes use, Lilly is attempting to get its medication approved in obesity.
Friday, Lilly quietly registered a new phase 3b trial dubbed SURMOUNT-5. The study, posted on ClinicalTrials.gov, is a head-to-head sparring match with Novo's Wegovy in obese or overweight patients with weight-related health conditions.