Organon Becomes Sole Distributor And Promoter For Eli Lilly's Migraine Medicines Emgality (Galcanezumab) And Rayvow (Lasmiditan) In Europe; Total Consideration To Be Paid To Lilly Includes An Upfront Payment Of $50M And Sales-based Milestone Payments
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Organon (OGN) has entered into an agreement with Eli Lilly (LLY) to become the sole distributor and promoter of Lilly's migraine medications, Emgality (Galcanezumab) and Reyvow (Lasmiditan), in Europe. The deal includes an upfront payment of $50 million from Organon to Lilly, along with additional sales-based milestone payments.
December 18, 2023 | 12:34 pm
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NEUTRAL IMPACT
Eli Lilly will receive $50 million upfront and additional sales-based milestone payments from Organon for the distribution rights of its migraine drugs in Europe.
While Eli Lilly is receiving an upfront payment and potential future milestones, the impact on its stock may be neutral in the short term as the company is large and this deal may not significantly affect its overall financials.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Organon will distribute and promote Emgality and Reyvow in Europe, paying Eli Lilly $50M upfront plus sales milestones.
The deal could potentially increase Organon's revenue stream in Europe and indicates a strategic move to expand its product portfolio. The upfront payment is significant, but the future sales-based milestones could lead to higher revenues if the drugs perform well in the market.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80