Lilly to acquire Avid

INDIANAPOLIS and PHILADELPHIA Eli Lilly's acquisition of a leader in molecular imaging development could boost its Alzheimer's disease drug pipeline.

Lilly said it inked a definitive merger agreement to acquire Avid Radiopharmaceuticals. Under the terms of the agreement, Lilly will acquire all outstanding shares of Avid for an upfront payment of $300 million, subject to adjustment based on existing cash on hand at closing. Avid stockholders also will be eligible for up to $500 million in additional payments, contingent upon potential future regulatory and commercial milestones for florbetapir, a molecular imaging agent under investigation for detecting the presence of amyloid plaque in the brain. Beta-amyloid plaque is a defining pathology of Alzheimer's disease. A marketing application for florbetapir recently was submitted to the Food and Drug Administration.

The acquisition of Avid also provides Lilly with a diagnostics development platform covering several disease areas, including Parkinson's disease and diabetes.

"The acquisition of Avid Radiopharmaceuticals aligns well with Lilly's innovation-based strategy, offers a potential near-term revenue opportunity, leverages our neuroscience expertise and will immediately bolster our diagnostics capabilities," said John Lechleiter, Lilly chairman and CEO. "We look forward to partnering with Avid's experts during the regulatory process for florbetapir, and are intent on gaining FDA approval for this promising diagnostic intended to help clinicians and researchers identify the presence of beta-amyloid plaque in the brain."

Added Daniel Skovronsky, Avid's founder and CEO, "We are very excited to join the great scientific team at Lilly and continue our work to develop new molecular imaging agents capable of changing the medical management of significant chronic human diseases. We've had a productive and long-standing relationship with Lilly, and believe in their approach to providing improved outcomes for individual patients."