Amylin sues Eli Lilly, alleging anti-competitive activity

San Diego, USA-based Amylin Pharmaceuticals (Nasdaq: AMLN) has filed a law suit against drug major Eli Lilly (NYSE: LLY) in the US District Court for the Southern District of California, alleging that Lilly is engaging in anticompetitive activity and breaching its strategic alliance agreements with Amylin to maximize commercialization of exenatide.

In 2002, Amylin entered an alliance with Lilly for the global development and commercialization of exenatide, a drug indicated as a first line treatment for type 2 diabetes that is currently marketed as Byetta (exenatide) injection. Exenatide is also the active ingredient in Bydureon (exenatide extended-release for injectable suspension), a once-weekly version currently under review by the US Food and Drug Administration, and last month received a positive recommendation from a European Medicines Agency advisory panel.

Amylin posted first quarter 2011 net sales of $128.0 million for Byetta, while Lilly recognized total revenue of $101.8 million for the drug, a decrease of 12% on the like 2010 period. Amylin’s shares shed 4% to $13.13 in afternoon trading yesterday.