United Therapeutics & Lilly is an LES Deals of Distinction Award winner

On October 21, 2009, the Licensing Executives Society (USA & Canada), Inc. presented its Deals of Distinction Awards to winners in five industry sectors. The 2009 LES Deals of Distinction Award Winner in the Health Care Sector was the Eli Lilly and United Therapeutics transaction.

I was proud to have acted for United Therapeutics on this. I am sorry to report that the award did not come with a large plaque or anything.

In November, 2008, Eli Lilly and Company and United Therapeutics Corporation entered into a license and a supply agreement related to the U.S. commercialization rights for the pulmonary arterial hypertension indication of Lilly`s molecule, tadalafil. United Therapeutics made 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. Lilly purchased $150 million of United Therapeutics common stock. The transaction will greatly enhance the ability to provide this medicine as a new therapeutic option for patients of this very serious disease.

"This deal is a clear demonstration of the power of courage and creativity in licensing," said Mark Nawacki, chair of the LES Life Sciences Sector.

"Historically, large pharma has been very cautious in partnering deals for new indications on major strategic brands such as tadalafil (marketed as Cialis by Lilly). This is an inspired transaction because the financial deal structure mitigates such concerns while the equity purchase component enables a solution in the worst capital market we have seen in a generation."