Lilly teams up with Camurus

Eli Lilly is the stock we've bought most actively in the last year, but its share price has been very choppy. Sales of their world-leading weight-loss drugs have been rising fast, but the market has not yet fully grasped their revenue potential.

As a result, we've been watching the news closely for any Eli Lilly updates. I was pleased to see that they've teamed up with a Swedish company, Camurus, to exploit the latter's FluidCrystal technology in a deal worth up to $870 million.

The FluidCrystal system slowly delivers drugs through prefilled autoinjector pens that contain a lipid solution that turns into a liquid crystalline gel upon contact with a patient's bodily fluids. Then, it breaks down over time, releasing the encapsulated active ingredient in the paired drug, allowing for sustained benefits "from days to months".

Eli Lilly has licenced the Camurus technology for the delivery of its obesity and diabetes drugs. The deal includes an upfront payment of $290 million and a further $580 million in sales-based milestone payments and royalties. Sounds good.