Lilly receives payment following Amylin Pharmaceuticals buyout

Lilly has received a one-off payment from former partner Amylin Pharmaceuticals, following the latter company's acquisition by Bristol-Myers Squibb.

Coming after the completion of the takeover, Lilly has been paid $1.26 billion (803.36 million pounds) in satisfaction of its revenue sharing obligation pertaining to the diabetes therapy exenatide.

This allows the company to realise the value of this arrangement on a near-term basis, significantly bolstering its income for 2012 and 2013 and strengthening its balance sheet considerably.

Lilly has now amended its guidance for the current fiscal year to reflect the impact of this new arrangement.

Derica Rice, Lilly's executive vice-president for global services and chief financial officer, said: "With this additional cash, we will continue to advance our pipeline of more than 60 potential new medicines in development, as well as fund capital expenditures, business development activity, our dividend and share repurchases."

The takeover of Amylin Pharmaceuticals was finalised last week and will also see Bristol-Myers Squibb expand its pre-existing diabetes collaboration with AstraZeneca.