BI, Lilly form strategic partnership for diabetes drugs

INDIANAPOLIS — U.S. drug maker Eli Lilly and German drug maker Boehringer Ingelheim will collaborate to develop drugs for diabetes, the companies said Tuesday.

The agreement centers around investigative drugs currently in mid- to late-stage clinical development, including two oral drugs made by BI, BI10773 and linagliptin, and two basal insulin analogues made by Lilly, LY2605541 and LY2963016. The deal also includes options to develop and commercialize a Lilly monoclonal antibody.

Under the agreement, Lilly will pay BI $389.1 million, and BI will be eligible to receive up to $810.8 million in milestone payments related to linagliptin and BI10773. Lilly will be eligible to receive up to $650 million in milestone payments related to its two insulin analogues. If the two companies decide to develop the monoclonal antibody, Lilly could receive an additional $525 million in milestone payments.