Boehringer Ingelheim, Lilly Revise Diabetes Alliance
By Cyndi Root
Boehringer Ingelheim and Eli Lilly have revised their Diabetes Alliance in an effort to enhance efficiency and focus on product launches. The two companies announced the restructuring in a press release, stating that the operational and financial structure will change in certain countries. The agreements in 17 countries will remain the same but in other countries, each company will market only the pharmaceutical agents that they brought into the alliance.
Dr. Ulrich Drees, Senior VP at Boehringer Ingelheim, said, “As our alliance continues to evolve, and with more medicines receiving approval by regulators, we have determined that enhancements are needed to reduce operational complexities in certain countries around the world. By continuing our work under this revised model, our companies can better focus on the important task of delivering innovative solutions to patients.”
Revised Boehringer Ingelheim, Lilly Agreement
The agreement for the 17 countries that remain unchanged include the U.S., the U.K., and Canada. Also included are European nations and South American and Asian countries. These countries represent 90 percent of the alliance’s markets in which the two companies intend to continue co-promoting medicines. In the countries with revised agreements, each entity will exclusively commercialize their proprietary molecules. The revised arrangement is to take effect starting January 1, 2015, although the companies expect a transitioning process. The new model also changes the financial terms of the partnership and includes upfront payments and milestones in lieu of commission payments in those markets.
Enrique Conterno, president of Lilly Diabetes, commented, “Lilly and Boehringer Ingelheim have a highly successful alliance. In less than four years, our companies have worked to develop and introduce several new important treatments for diabetes.” The two companies have successfully launched Trajenta (linagliptin), Jardiance (empagliflozin), and Jentadueto (linagliptin/metformin HCI). Insulin glargine and fixed-dose combinations are proving marketable as well.
Diabetes Market
Boehringer Ingelheim and Lilly are competing in a market worth $55 billion by 2017, according to a report by Visiongain. Treatment types include oral drugs, insulin derivatives, and non-insulin injectables. Due to the rising incidence of diabetes worldwide and the growing preference for technologically advanced options, industry can also expect a strong demand for diabetes diagnostic devices. Additionally, since obesity is closely associated with diabetes, drug makers will see demand for diabetes medications that address associated complications of obesity, including heart disease, kidney disease, and stroke.