Boehringer Ingelheim and Lilly revise diabetes alliance in certain countries

In a move that will strengthen their 2011 alliance by enhancing efficiencies and enabling greater focus on product launches, German family-owned pharma major Boehringer Ingelheim and US peer Eli Lilly (NYSE: LLY) are changing the operational and financial structure of their diabetes alliance in certain countries.

Under the revised agreement, 17 countries representing more than 90% of the alliance’s anticipated market opportunity will continue their co-promotion work. In all other countries, the companies will exclusively commercialize the respective molecules they brought to the alliance. The changes will be implemented starting January 1, 2015.

The scope of the alliance will remain unchanged in the following 17 countries: USA, Germany, Italy, Spain, France, UK, Republic of Ireland, Portugal, Canada, Japan, China, Australia, New Zealand, South Korea, Taiwan, Brazil, and Mexico.

Under a revised agreement, Boehringer Ingelheim and Lilly will exclusively commercialize the respective molecules they brought to the alliance in all other countries under revised financial terms that will include an upfront payment and ongoing payments paid to Lilly in lieu of commission payments in those markets.