Lilly and United Therapeutics License and Supply Agreements

I met the United Therapeutics folks last year when they almost did a deal with a local client of mine. They retained me to act when they got a chance to in-license tadalafil from Lilly:

"Eli Lilly and and United Therapeutics have entered into a license and a supply agreement related to the U.S. commercialization rights for the pulmonary arterial hypertension (PAH) indication of Lilly’s molecule, tadalafil.

Under the terms of the agreements, United Therapeutics will make an upfront payment of $150 million to Lilly for the exclusive rights to commercialize tadalafil for PAH in the United States, as well as for a product manufacturing and supply arrangement. In addition, Lilly will purchase $150 million of common stock from United Therapeutics."

Tadalafil lowers pulmonary arterial pressure and pulmonary vascular resistance – a good thing in pulmonary hypertension – but it also has other uses. Tadalafil is also the active ingredient in Cialis (in case you don’t know, a well-advertised drug for the treatment of erectile dysfunction). It has a recreational use, and soon also a life-saving use.