(AP) -- Eli Lilly will pay Boehringer Ingelheim $387.4 million and collaborate with the German drugmaker to develop diabetes drugs with the U.S. pharmaceutical company facing the expiration of some of its key patents.
Lilly, based in Indianapolis, loses patent protection this year for its top-selling drug, the anti-psychotic Zyprexa, and faces the loss of some other key patents in the next few years. The drugmaker said Tuesday that the deal with Boehringer Ingelheim offers the potential of boosting near-term revenue.
Lilly could receive more than $1 billion in future payments depending on how well the collaboration performs and whether the drugs under development reach certain sales milestones. Boehringer Ingelheim will be eligible for future payments totaling about $807 million.
The collaboration includes two Lilly insulins expected to enter late-stage testing this year and a type 2 diabetes treatment from Boehringer Ingelheim that is being reviewed by regulators.
Shares of Eli Lilly and Co. rose slightly in premarket trading.
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