Statement re

     
BW20020920002069  20020920T120732Z UTC


( BW)(ELI-LILLY-&-CO)(BC43) Statement re

    Business Editors
    UK REGULATORY NEWS

    INDIANAPOLIS & SAN DIEGO--(BUSINESS WIRE)--Sept. 20,
2002--(NYSE:LLY)

If Approved, Phase III Compound, AC2993, Would Represent the First of
    the Next-Generation Therapies for People With Type 2 Diabetes

Eli Lilly and Company (NYSE:LLY) and Amylin Pharmaceuticals, Inc.
(Nasdaq:AMLN), announced today that they have signed a global
agreement to collaborate on the development and commercialization of
Amylin's compound AC2993 (synthetic exendin-4), a potential new
treatment for type 2 diabetes that, if approved, could represent the
first of a new class of compounds which have similar actions to GLP-1
(glucagon-like peptide-1). AC2993 is currently in Phase III clinical
trials with a submission to the U.S. Food and Drug Administration
anticipated as early as 2004.

"Lilly has been bringing major new therapies to people with diabetes
for nearly 80 years. This collaboration with Amylin, an innovator in
the development of next-generation diabetes therapies, confirms our
continued commitment to the treatment of diabetes and its
complications," said John C. Lechleiter, Ph.D., executive vice
president of pharmaceutical products and corporate development for
Lilly. "AC2993, if successful, would represent a significant advance
in the treatment of type 2 diabetes as this potent compound may enable
many people with type 2 diabetes to effectively control blood-glucose
levels while reducing or eliminating the risk of hypoglycemia and
weight gain."

"Amylin is committed to discovering, developing and commercializing
innovative new medicines to improve the lives of people with diabetes.
This collaboration with Lilly is a significant step for Amylin and
should accelerate our ability to achieve this goal," said Joseph C.
Cook, Jr., chairman and chief executive officer for Amylin. "Lilly's
leadership in the development and commercialization of innovative
diabetes therapies makes them an ideal partner to maximize the global
potential of AC2993."

Under terms of the agreement, Lilly will make initial nonrefundable
payments to Amylin totaling $80 million. Lilly will also purchase $30
million of Amylin common stock at a price of $18.69 per share. In
addition, in the future, Lilly will pay Amylin up to $85 million upon
the achievement of certain development and product profile milestones
of AC2993, including long-acting release formulations of the product
candidate. These milestones may be convertible into Amylin equity at
Lilly's option under certain circumstances. Lilly will also make
additional future payments to Amylin of up to $130 million contingent
upon global commercialization of AC2993, including long-acting release
formulations of the product candidate.

Lilly and Amylin will share U.S. development and commercialization
costs equally. Lilly's obligation to actively share in development
funding is estimated to begin following the completion of the majority
of work on the three pivotal Phase III clinical trials currently under
way. Amylin estimates the development costs through the completion of
these Phase III studies to be about $100 million. Development costs
outside the U.S. will be shared 80 percent by Lilly and 20 percent by
Amylin. Lilly is responsible for all commercialization costs outside
the U.S. Following the successful completion of the ongoing Phase III
trials and contingent upon certain other events, Lilly will make
available a $110 million convertible loan to fund a portion of
Amylin's development and commercialization costs.

The companies will equally copromote the product in the U.S., while
Lilly will market the product exclusively in countries outside the
U.S. Operating profits from sales of the product in the U.S. will be
shared equally. Outside the U.S., operating profits will be shared at
approximately 80 percent to Lilly and 20 percent to Amylin.
Additionally, the companies have agreed that, for a limited period of
time prior to the commercialization of AC2993, Amylin will copromote
Humatrope(R), Lilly's recombinant human growth hormone product, in the
U.S.

AC2993 (synthetic exendin-4) is being studied for its potential to
address important unmet medical needs of many people with type 2
diabetes. Clinical trials suggest that AC2993 decreases blood glucose
toward normal levels. This control of blood glucose is expected based
on known exendin-4 actions that are similar to those of GLP-1. These
actions include glucose-dependent stimulation of insulin secretion,
suppression of glucagon secretion, reduction of appetite and delay of
food absorption. These actions promote stimulation of insulin
secretion in the presence of elevated blood-glucose concentrations but
not during periods of normal or low blood-glucose concentrations,
thereby reducing or eliminating the risk of hypoglycemia. AC2993 has
also been shown in clinical studies to reduce both postmeal and
fasting blood-glucose levels. If approved, AC2993 is expected to be
administered as a fixed-dose injection. A long-acting release
formulation of AC2993 is in early development with a goal of a
once-a-month injection utilizing sustained-release drug delivery
technology from Alkermes, Inc.

Diabetes continues to increase in prevalence around the world with
more than 150 million people having the disease, according to the
World Health Organization. The WHO predicts the number of people with
diabetes will double by 2025. In the United States alone, an estimated
17 million people have diabetes with one million new diagnosed cases
predicted in 2002. Approximately 90 percent of people with diabetes
have type 2 diabetes, which is most common in adults. In addition,
worldwide costs for treating diabetes and its complications are
estimated to exceed $200 billion annually.

Amylin will conduct a conference call to discuss this press release on
Friday, September 20, 2002, at 10:00 a.m. Eastern/7:00 a.m. Pacific
time. The call will be webcast live through Amylin's corporate website
and a recording will be made available following the close of the
call. To access the webcast, please log on to www.amylin.com
approximately fifteen minutes prior to the call to register, download
and install any necessary audio software. A recording will be
available by phone for 24 hours beginning approximately one hour after
the close of the call and can be accessed at 800-428-6051 (domestic)
or 973-709-2089 (international), pass code 261396.

Lilly, a leading innovation-driven corporation, is developing a
growing portfolio of best-in-class pharmaceutical products by applying
the latest research from its own worldwide laboratories and from
collaborations with eminent scientific organizations. Headquartered in
Indianapolis, Ind., Lilly provides answers - through medicines and
information - for some of the world's most urgent medical needs.
Additional information about Lilly is available at www.lilly.com.

Amylin Pharmaceuticals is committed to improving the lives of people
with diabetes and other metabolic disorders through the discovery,
development and commercialization of innovative, cost-effective
medicines. Further information on Amylin Pharmaceuticals and its
pipeline in metabolism is available at www.amylin.com.

This press release contains forward-looking statements about the
potential of the investigational compound AC2993 and a long-acting
release formulation of AC2993 for the treatment of type 2 diabetes
that reflect the current beliefs of Lilly and Amylin and the terms of
a collaboration between Amylin and Lilly for the development and
commercialization of those potential products. However, as with any
pharmaceutical under development, substantial risks and uncertainties
exist in the process of development and regulatory review. There are
no guarantees that future clinical trials will confirm the preliminary
results referred to in this release or that AC2993 or any long-acting
release formulation of AC2993 will receive regulatory approvals or
prove to be commercially successful. There are also no guarantees that
the regulatory filings will proceed on the current timetable.
Accordingly, there is no assurance that Amylin will receive the
milestone payment amounts described in this release or that it will
have access to the loan amounts referred to in this release. In
addition, Lilly may terminate the collaboration at certain time
points, generally upon six months notice. In special cases where
AC2993 development does not meet certain specified expectations, Lilly
may terminate with three months notice. Furthermore, if AC2993 does
not achieve a designated annual sales amount after the completion of
the fourth full calendar year following its launch, either company may
have the right to request a modification of the financial terms of the
collaboration and in certain instances to require that the other
company choose to buy or sell its financial interest in the
collaboration. For further discussion of these and other risks and
uncertainties, see Lilly's and Amylin's respective 10-K and 10-Q
filings and other public disclosures filed with the United States
Securities and Exchange Commission. Lilly and Amylin undertake no duty
to update the forward-looking statements contained in this press
release.

Humatrope(R)(somatropin of recombinant DNA origin, Lilly)

   Short Name: Lilly (Eli) & Co
   Category Code: SAL
   Sequence Number: 00000816
   Time of Receipt (offset from UTC): 20020920T125947+0100

    --30--kmr/cl* 

    CONTACT: Lilly 
             Terra L. Fox, 317/276-5795
             or
             Amylin
             Daniel M. Bradbury, 858/552-2200
            
    KEYWORD: INDIANA 
    INDUSTRY KEYWORD: PHARMACEUTICAL MEDICAL BIOTECHNOLOGY 
MARKETING AGREEMENTS
    SOURCE: Lilly (Eli) & Co

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