Eli Lilly to sell hypoglycemia treatment for up to $1.1 billion in cash and milestone payments to Amphastar
Shares of Eli Lilly & Co. (LLY) gained 0.5% in premarket trading Monday, after the drugmaker announced an agreement to sell its hypoglycemia treatment for people with diabetes Baqsimi to Amphastar Pharmaceuticals Inc. (AMPH) for up to $1.075 billion in cash and potential milestone payments. Under terms of the agreement, Amphastar will pay $500 million in cash upfront and another $125 million in cash one year after the deal closes, which is expected to occur in the third quarter of 2023. Eli Lilly will also be eligible to receive milestone payments of up to $450 million based on sales. Lilly's stock has gained 5.3% year to date through Friday, while Amphastar shares have soared 56.5% and the S&P 500 has gained 7.7%.
-Tomi Kilgore
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04-24-23 0655ET
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