Pharma BD Deal Intelligence
The diabetes alliance that produced Jardiance and Tradjenta—a combined portfolio generating over $10B in annual revenue. The 50/50 cost and revenue sharing structure leveraged both companies' strengths: BI's chemistry and Lilly's diabetes commercial machine.
Eli Lilly and Boehringer Ingelheim established a broad diabetes alliance to jointly develop and commercialize a portfolio of diabetes compounds, anchored by empagliflozin (Jardiance), an SGLT2 inhibitor, and linagliptin (Tradjenta), a DPP-4 inhibitor. The alliance structure involves 50/50 cost and revenue sharing globally. BI contributes the compounds and Lilly contributes its diabetes commercial infrastructure. Financial terms were not fully disclosed but the combined portfolio has generated over $10B in annual revenue.
29M US cases/yr · $16.4B US Diabetes Drug Market (2011)
This record represents the broader Lilly-BI diabetes alliance. Empagliflozin's EMPA-REG OUTCOME trial (2015) demonstrated 38% reduction in CV death, expanding the addressable market to heart failure and CKD regardless of diabetes status.
Jardiance became a top-selling diabetes drug ($7.4B in 2023) with label expansions into heart failure (2022) and CKD (2023). The alliance was restructured in 2017. The SGLT2 class transformed from diabetes to cardiorenal therapy.
21M US cases/yr · $16.4B US Diabetes Therapeutics Market (2011) · $28.1B Global Diabetes Drug Market (2012)
Type 2 diabetes affects ~29 million Americans. The Lilly-BI alliance pooled empagliflozin (SGLT2 inhibitor) and linagliptin (DPP-4 inhibitor). Empagliflozin would differentiate on CV outcomes (EMPA-REG OUTCOME, 2015), becoming the first diabetes drug to show CV mortality reduction.
The 2011 diabetes market was crowded: DPP-4 inhibitors (Januvia leading), GLP-1 agonists (Victoza), insulins (Lantus), and emerging SGLT2 inhibitors. Jardiance's CV outcomes data transformed SGLT2 inhibitors into a cardiac/renal drug class.
Lilly and Boehringer established broad diabetes alliance for empagliflozin and linagliptin development.
Eli Lilly and Company closes co-development of Boehringer Ingelheim GmbH for $444M, establishing strategic position and initiating integration.
Jardiance grew 22% to $3.3B (Lilly share) and EUR8.8B (BI total). Approved for CKD, HF, T2D, CV risk.
Jardiance is #1 SGLT2 inhibitor globally. 4+ indications. Alliance restructured 2024 to focus on Jardiance. Multi-billion annual revenue.
Strategic Fit: 92/100 | Financial Return: 95/100 | Pipeline Outcome: 95/100 | Integration: 82/100 | Deal Difficulty: 55/100. Achieved Stated Rationale overall outcome.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Eli Lilly and Company / Boehringer Ingelheim GmbH (this deal) | 2011 | $444M | 89 |
| Eli Lilly and Company / Loxo Oncology, Inc. | 2019 | $8.0B | 88 |
| Eli Lilly and Company / Applied Molecular Evolution Inc. | 2003 | $400M | 88 |
| Eli Lilly and Company / ICOS Corporation | 2006 | $2.3B | 87 |
| Eli Lilly and Company / Novartis Animal Health | 2014 | $5.4B | 70 |
| Eli Lilly and Company / Incyte Corporation | 2009 | $755M | 69 |
| Eli Lilly and Company / Hanmi Pharmaceutical Co. Ltd. | 2026 | $1.3B | 65 |
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More: 2011 deals · Eli Lilly and Company deals · Cardiovascular deals