Bitter divorces aside, taking your partner to court is rarely the best way to settle things. Unfortunately, Amylin Pharmaceuticals
The biotech is partnered with Eli Lilly
Lilly recently established a partnership with German Boehringer Ingelheim to develop multiple diabetes drugs, the first of which, Tradjenta, was approved this month. Lilly apparently plans to have one sales force marketing both drugs, which Amylin isn't too happy about. Amylin says it tried to resolve the issue amicably but was forced to go to court because the two couldn't work out their differences.
Amylin claims Byetta and Tradjenta are competitors, but that's stretching the definition just a bit. Tradjenta is an oral medication in the same class as Merck's
The bigger issue for Amylin is likely how much effort the sales force will put into each drug. Lilly is likely more concerned with getting shiny new Tradjenta off to a good start -- competition with megablockbuster Januvia is going to be tough -- than tired old Byetta and its slipping sales.
Investors aren't privy to the partnership documents, so it's hard to know how this will end.
Fighting with the company you're supposed to be working with isn't exactly the best way to grow sales, so investors should hope it comes to an end quickly.