Eli Lilly and Company (Lilly) has entered a definitive agreement to sell its dry nasal spray, Baqsimi, to Amphastar Pharmaceuticals for a cash consideration of $500m.

Lilly will receive an additional payment of $125m on the first anniversary of the completion of the deal.

Amphastar is expected to make up to $450m in milestone payments based on sales of Baqsimi.

The deal has received approval from the boards of directors of the two companies and is expected to complete in the second or third quarter of 2023.

Baqsimi is the first and only nasally given glucagon to treat very low blood sugar, or severe hypoglycaemia, in diabetes patients.

Lilly launched the drug in 2019 to provide rescue treatment for diabetes patients who take insulin.

It is now available in 27 international markets, with $139.3m in global sales reported last year.

Lilly executive vice-president and diabetes and obesity president Mike Mason stated: “Our portfolio of therapies continues to make life better for people with diabetes, and we will continue this important mission while also increasing our focus on advancing our pipeline of potential breakthrough treatments.

“Baqsimi’s positive impact has been felt by people with diabetes around the globe and we’re working closely with Amphastar to facilitate a successful transition and consistent patient experience.”

Amphastar plans to provide dedicated commercial investment in Baqsimi to enable more people taking insulin to be prepared with a rescue treatment for severe hypoglycaemia.