Bristol-Myers Moves To Sell Cancer Drug Rights to Eli Lilly
Bristol-Myers Squibb Co sells its Erbitux drug in an agreement with Eli Lilly and Co
Last month, Bristol-Myers Squibb Co (NYSE: BMY) along with Eli Lilly and Co (NYSE: LLY) announced of an agreement between the two of the former selling rights to a cancer fighting drug to Eli Lilly.
According to initial reports, the transfer of rights to Bristol-Myers’ cancer fighting drug, Erbitux were sold for an undisclosed amount. Although, monetary details were not disclosed but reports claim Eli Lilly will compensate Bristol-Myers in royalties — payments are expected to run up till late 2018.
It is important to note that the deal is speculated by industry analysts to close by final quarter of the yearfor the pharmaceutical company — and only accounts for complete operations of the drug in the North American region only.
Upon the announcement of the deal, Lilly Oncology President Sue Mahony reportedly said, “Fully bringing Erbitux into the Lilly Oncology portfolio accelerates Lilly’s commitment and leadership in gastrointestinal cancers to include an effective treatment for advanced colorectal cancer as well as head and neck cancer.”
The drug was initially developed to treat colorectal cancer patients, attaining authorization from relevant officials in 2004 — in 2006 the drug as given a go-ahead as a considerable drug to treat head and neck sarcomas too.
According to reports, Erbitux was developed by Bristol-Myers in collaboration with ImClone Systems Inc. However, in 2008 Eli Lilly acquired ImClone Systems for nearly $6.5 billion.
The drug is deemed to be highly effective fort the treatment cancer as Bristol-Myers reported nearly $723 million revenues in fiscal year 2014, attributing mostly North American region to driving sales. The 2014 revenues are an increment from previous years’ revenues, by almost four percent. The drug is equally lucrative in Europe too.
Bristol-Myers Squibb Company is headquartered in New York City, New York specializes in manufacturing drugs for viruses, such as human immunodeficiency virus (HIV) infection, cardiovascular and metabolics related illnesses amongst others.
Eli Lilly and Co which is based in Indianapolis, Indiana operates in two distinct business segments, namely human pharmaceuticals and animal health products. Some of Eli Lilly’s most well-known products are; Dulaglutide, Posilac, Cymbalta, Amyvid, ReoPro, Ramucirumab and Tanezumab amongst many others.
Both companies are expected to publish first quarter results for the current fiscal year later on in the month.