Boehringer Ingelheim and Lilly Revising Operational Structure of Diabetes Alliance in Certain Countries

PR58421

INDIANAPOLIS and INGELHEIM, Germany, Oct. 29, 2014 /PRN=KYODO JBN/ --

    -- Significant portion of alliance opportunity will remain unchanged; some

               countries will transition to exclusive promotion in 2015

    In a move that will strengthen their alliance by enhancing efficiencies and

enabling greater focus on product launches, Boehringer Ingelheim and Eli Lilly

and Company (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 percent 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: United States, Germany, Italy, Spain, France, United Kingdom,

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. Lilly plans to communicate the impact to its 2014 financial

guidance in its third quarter Form 10-Q report to the U.S. Securities and

Exchange Commission.

    "Lilly and Boehringer Ingelheim have a highly successful alliance," said

Enrique Conterno, president, Lilly Diabetes. "In less than four years, our

companies have worked to develop and introduce several new important treatments

for diabetes. The revised agreement will bring greater focus and clarity to our

alliance and will benefit health care professionals, patients, and our

companies. We look forward to continuing our important work together that makes

life better for people with diabetes."

    To date, three new treatments for diabetes have been launched by the

alliance: Trajenta(R) (linagliptin), Jardiance(R) (empagliflozin), and

Jentadueto(R) (linagliptin/metformin HCI). Additionally, the alliance's new

insulin glargine product has been tentatively approved in the U.S. and approved

in Europe. Other potential treatments, including fixed-dose combinations,

continue being developed by the alliance.

    "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," said Dr

Ulrich Drees, corporate senior vice president, International Project

Management, Boehringer Ingelheim. "By continuing our work under this revised

model, our companies can better focus on the important task of delivering

innovative solutions to patients."

    Boehringer Ingelheim and Eli Lilly and Company

    In January 2011, Boehringer Ingelheim and Eli Lilly and Company announced

an alliance in diabetes that centers on compounds representing several of the

largest diabetes treatment classes. The alliance leverages the strengths of two

of the world's leading pharmaceutical companies. By joining forces, the

companies demonstrate commitment in the care of patients with diabetes and

stand together to focus on patient needs. Find out more about the alliance at

www.boehringer-ingelheim.com or www.lilly.com.

    About Boehringer Ingelheim

    The Boehringer Ingelheim group is one of the world's 20 leading

pharmaceutical companies. Headquartered in Ingelheim, Germany, Boehringer

Ingelheim operates globally with 142 affiliates and a total of more than 47,400

employees. The focus of the family-owned company, founded in 1885, is

researching, developing, manufacturing and marketing new medications of high

therapeutic value for human and veterinary medicine.

    Taking social responsibility is an important element of the corporate

culture at Boehringer Ingelheim. This includes worldwide involvement in social

projects, such as the initiative "Making More Health" and caring for the

employees. Respect, equal opportunities and reconciling career and family form

the foundation of the mutual cooperation. In everything it does, the company

focuses on environmental protection and sustainability.

    In 2013, Boehringer Ingelheim achieved net sales of about 14.1 billion

euros. R&D expenditure corresponds to 19.5% of its net sales.

    For more information please visit www.boehringer-ingelheim.com.

    About Lilly Diabetes

    Lilly has been a global leader in diabetes care since 1923, when we

introduced the world's first commercial insulin. Today we are building upon

this heritage by working to meet the diverse needs of people with diabetes and

those who care for them. Through research and collaboration, a broad and

growing product portfolio and a continued determination to provide real

solutions-from medicines to support programs and more-we strive to make life

better for all those affected by diabetes around the world. For more

information, visit www.lillydiabetes.com.

    About Eli Lilly and Company

    Lilly is a global healthcare leader that unites caring with discovery to

make life better for people around the world. We were founded more than a

century ago by a man committed to creating high-quality medicines that meet

real needs, and today we remain true to that mission in all our work. Across

the globe, Lilly employees work to discover and bring life-changing medicines

to those who need them, improve the understanding and management of disease,

and give back to communities through philanthropy and volunteerism. To learn

more about Lilly, please visit us at www.lilly.com and

http://newsroom.lilly.com/social-channels.

    C-LLY

    CONTACT:

    Greg Kueterman

    Director, Lilly Diabetes Communications

    Email: kueterman_gregory_andrew@lilly.com

    Phone: +1 (317) 432-5195

    Ralph Warsinky

    Boehringer Ingelheim GmbH

    Email: press@boehringer-ingelheim.com

    Phone: +49 (6132) 77-7051

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    SOURCE: Eli Lilly and Company