Eli Lilly announced Friday afternoon that it has signed a $5 million non-competition agreement with Daniel Skovronsky, EVP, chief scientific and medical officer, and president, Lilly Research Laboratories.
As part of the non-compete, non-solicitation agreement, Skovronsky has agreed not to “engage in certain competitive activities or solicit anyone who has a business relationship” with Lilly during the period of his employment and for a period of up to 12 months following termination of employment.
Additionally, Skovronsky is entitled to receive a payment of up to $5 million, minus the applicable reductions by Lilly and legally required deductions for the payment of wages, in the event that the company decides to enforce the terms of the agreement.
Skovronsky has been with Lilly since 2010 when the company acquired Avid Pharmaceuticals, where he had been CEO since its founding in 2004.
During his time with the pharma giant, he has had a number of escalating roles, including VP of tailored therapeutics; VP of diabetes research as well as SVP of clinical and product development. Among his roles is overseeing Lilly’s global business development.
It’s been a busy past few weeks for Lilly on several fronts.
To start the month, the company announced that it would reduce the price of the most commonly prescribed insulins by 70% and cap the monthly out-of-pocket costs at $35 or less.
“The aggressive price cuts we’re announcing today should make a real difference for Americans with diabetes,” Lilly CEO David A. Ricks said in a statement. “Because these price cuts will take time for the insurance and pharmacy system to implement, we are taking the additional step to immediately cap out-of-pocket costs for patients who use Lilly insulin and are not covered by the recent Medicare Part D cap.”
Insulin-producing rivals Novo Nordisk and Sanofi followed suit in the weeks afterwards.
Lilly also kicked off the full-scale consumer campaign for its highly sought after diabetes drug Mounjaro in mid-March.
The promotional effort, which was created in partnership between Lilly and FCB, comes after the digital campaign launch in January.
Additionally, Eli Lilly reached an agreement with drug discovery company Confo Therapeutics to gain licensing to Confo’s non-opioid neuropathic pain candidate, CFTX-1554.
As part of the deal, Confo will receive $630 million upfront and there could be an additional $590 million in milestones if Lilly decides to take on another candidate as well.