Lilly agrees Avid Radiopharmaceuticals takeover

Lilly has agreed to acquire the privately-held healthcare firm Avid Radiopharmaceuticals in a transaction worth up to $800 million (495.7 million pounds).

The pharmaceutical company is to pay an upfront fee of $300 million for all outstanding Avid shares and will be eligible for up to $500 million in additional payments, based on the future commercial and regulatory progress of Avid products.

In acquiring the firm, Lilly takes control of a portfolio of products for the detection and monitoring of chronic conditions, including Parkinson's disease and diabetes.

Avid's lead development programme is florbetapir, a promising molecular imaging agent which can help to detect amyloid plaque in the brain to help diagnose Alzheimer's disease.

Dr John Lechleiter, Lilly's chairman and chief executive officer, said: "The acquisition of Avid Radiopharmaceuticals aligns well with Lilly's innovation-based strategy, offers a potential near-term revenue opportunity, leverages our neuroscience expertise and will immediately bolster our diagnostics capabilities."

Last month, Lilly published its financial report for the third quarter of 2010, noting a two percent year-over-year revenue growth.