Pharma BD Deal Intelligence

Eli Lilly and Company / Alnara Pharmaceuticals

2010 · Acquisition/Merger · $380M · Complete

A near-total loss: Lilly paid $180M upfront (up to $380M total) for liprotamase in 2010, only for an FDA advisory panel to vote against approval and a 2011 Complete Response Letter to kill it. Lilly abandoned further trials and sold the asset to Anthera in 2014 for contingent royalties only, never recouping its cash outlay.

WRONG BY 37 POINTS
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The coverage arc

Jul 02, 2010 BioSpace Bullish

BioSpace reported Lilly would pay up to $380M ($180M upfront plus up to $200M in regulatory and commercial milestones) for Alnara, framing it as a strategic…

Sep 01, 2010 Nature Biotechnology Neutral

Nature Biotechnology covered the Alnara acquisition as a meaningful entry by Lilly into the pancreatic enzyme replacement market, noting the differentiated…

Jul 01, 2014 Genetic Engineering & Biotechnology News Bearish

GEN reported Lilly took a $122.6M impairment in 2012 after FDA issued a Complete Response Letter on liprotamase in 2011, then divested the asset to Anthera in…

Source summaries from our enrichment pipeline; follow links for originals.

All 6 sources with sentiment breakdown →

Lilly to acquire Alnara for $180M upfront + up to $200M development/regulatory milestones. Adds Phase 3-ready protein therapeutic for pancreatic insufficiency.

Did it work? Outcome assessment

Strategic verdict
Failed to Achieve
Financial impact
Impaired/Written Down
Lilly paid ~$180M upfront (deal valued up to $380M with milestones). After the FDA complete response letter, Lilly recorded a $122.6M intangible asset impairment charge for liprotamase in Q4 2012, and ultimately divested the asset to Anthera Pharmaceuticals in 2014.
Pipeline outcome
Assets Terminated
Lead and sole material asset liprotamase (pancreatic enzyme replacement therapy for exocrine pancreatic insufficiency) received an FDA complete response letter on April 15, 2011 requiring an additional clinical trial, following a January 2011 advisory committee vote against approval. Lilly did not advance it further and out-licensed/sold the program to Anthera in 2014.

Key facts

Disease & market context

Exocrine Pancreatic Insufficiency (Cystic Fibrosis)

Disease Overview

Exocrine pancreatic insufficiency (EPI) is the inability of the pancreas to secrete enough digestive enzymes (lipase, protease, amylase) to digest food normally, causing malabsorption, steatorrhea, and malnutrition. In the US it most commonly arises from cystic fibrosis (affecting ~85% of CF patients), chronic pancreatitis, and pancreatectomy. Standard of care is lifelong pancreatic enzyme replacement therapy (PERT) taken with every meal.

Competitive Landscape

By 2009-2010 the FDA had completed a long-running enforcement action requiring all PERTs to obtain formal NDA approval, leaving five porcine pancrelipase products on the market: Abbott's Creon (the dominant brand), Aptalis/Eurand's Zenpep, J&J's Pancreaze, Digestive Care's Pertzye, and Aptalis's Ultresa. All five are pig-pancreas-derived enteric-coated capsules with similar mechanism but different particle sizes and dosing. Liprotamase was strategically differentiated as the only non-porcine recombinant PERT — a microbial-fermentation cocktail of cross-lipase, cross-protease, and cross-amylase — which Lilly believed would address supply-chain risk (porcine sourcing was contaminating concerns), religious/dietary objections, and dosing convenience. Cystic Fibrosis Foundation co-funded development. The thesis collapsed in 2011 when FDA issued a Complete Response Letter requesting additional efficacy data; Lilly took a $122.6M impairment in 2012 and divested liprotamase to Anthera in 2014, where it became Sollpura and ultimately failed Phase 3 [https://www.genengnews.com/news/anthera-buys-liprotamase-from-lilly-plans-phase-iii-trial/]. The deal is a textbook 'platform bet that lost the regulatory race' case study.

Related deals — scored

DealYearValueOutcome
Eli Lilly and Company / Alnara Pharmaceuticals (this deal)2010$380M13
Eli Lilly and Company / Boehringer Ingelheim GmbH2011$444M89
Eli Lilly and Company / Loxo Oncology, Inc.2019$8.0B88
Eli Lilly and Company / Applied Molecular Evolution Inc.2003$400M88
Eli Lilly and Company / ICOS Corporation2006$2.3B87
Eli Lilly and Company / Novartis Animal Health2014$5.4B70
Eli Lilly and Company / Incyte Corporation2009$755M69

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