Eli Lilly, Amylin end collaboration, litigation

By the Associated Press | November 8, 2011 | 8:15 AM EST

INDIANAPOLIS (AP) — Drugmakers Eli Lilly and Amylin Pharmaceuticals are ending their development agreement for diabetes drugs and are resolving litigation between the companies.

San Diego-based Amylin will assume full responsibility for sales of the diabetes treatment Byetta and pay Indianapolis-based Lilly $250 million.

Amylin also will make future revenue sharing payments to Lilly of up to $1.2 billion plus interest. The companies had worked together for years and teamed to develop the once-weekly diabetes treatment Bydureon, which received European approval earlier this year. It has yet to receive U.S. approval.

The relationship soured earlier this year after Lilly teamed with the German company Boehringer Ingelheim to develop diabetes treatments. Amylin sued Lilly over that deal and accused the larger drug company of breaking their commercialization agreement for diabetes drugs.