Shares of pharmaceutical major Eli Lilly & Co. (NYSE:LLY) have been on a tear recently with double-digit price gains over the past month. Today, the company has announced the divestment of BAQSIMI to Amphastar (NASDAQ:AMPH), a pharmaceutical company.
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BAQSIMI is a nasally administered glucagon targeted for severe hypoglycemia in diabetes patients. The product notched $139.3 million in global sales in 2022 and boosts Amphastar’s diabetes product portfolio.
Under the agreement, Lilly gets $500 million in cash upon closing of the transaction and a further $125 million a year after the closing. The company also stands to rake in $450 million in milestone payments as well. The deal is anticipated to close in the second or third quarter of this year.
Overall, the Street has a $375.3 consensus price target on LLY, implying the stock may be fairly priced at current levels. That’s after a nearly 16% runup in LLY shares over the past month alone.
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