Eli Lilly Divests Low Blood Sugar Drug Baqsimi To Amphastar For $500M Cash

Eli Lilly And Co LLY will divest Baqsimi, its nasal treatment for severe hypoglycemia in people with diabetes.
Low blood glucose, also called low blood sugar or hypoglycemia, occurs when the glucose level in the blood drops below what is healthy. For many people with diabetes, this means a blood glucose reading lower than 70 milligrams per deciliter (mg/dL).
California-based Amphastar Pharmaceuticals Inc AMPH will buy it for $500 million in cash, another $125 million at the one-year mark, and up to $450 million in sales-based milestones.
The rescue treatment was launched by Lilly in 2019 and generated $139.3 million in sales last year, the company said and is available in 27 countries.
Jack Zhang, Amphastar's president and CEO commented: "The acquisition of Baqsimi will integrate our core strategic vision of strengthening our proprietary products profile in addition to enhancing our diabetes portfolio offering."
"Our portfolio of therapies continues to make life better for people with diabetes, and we will continue this important mission while also increasing our focus on advancing our pipeline of potential breakthrough treatments," Mike Mason, Lilly EVP and president of the pharma's diabetes and obesity unit said in a statement.
Price Action: AMPH shares closed at $43.84 on Friday, and LLY shares are up 0.92% at $388.80 during the premarket session on the last check Monday.