Eli Lilly and Company LLY and Innovent Biologics Inc., a biopharmaceutical company in China, announced that they have entered into a collaboration to develop and commercialize at least three cancer treatments over the next decade.
While Innovent will be responsible for development and manufacturing for the China market, Lilly will commercialize the three treatments once they are developed and approved. Innovent will also enjoy co-promotion rights.
The Agreement in Detail
Lilly will be contributing its cMet monoclonal antibody gene for the potential treatment of non-small cell lung cancer. Lilly, nevertheless, has the right to continue the development of its cMet monoclonal antibody program outside China.
Meanwhile, Innovent will be contributing its monoclonal antibody targeting protein CD-20 for evaluation in hematologic malignancies.
Innovent will also contribute a pre-clinical immuno-oncology molecule for development in China. Lilly’s responsibility is to develop, manufacture and commercialize this molecule outside China.
Moreover, Lilly will get the right to develop and commercialize up to three pre-clinical bispecific immuno-oncology molecules outside China.
Lilly intends to make an upfront payment of $56 million to Innovent. Besides this, the former can make future payments of over $400 million for the pre-clinical immuno-oncology molecule on the subsequent achievement of milestones. Moreover, Innovent is entitled to sales royalties and other payments on the commercialization of certain products.
Lilly has been quite active in pursuing in-licensing deals to boost its product portfolio and pipeline. Last week, the company entered into an agreement with Hanmi Pharmaceutical to develop and commercialize Hanmi's oral Bruton's tyrosine kinase (BTK) inhibitor, HM71224, which is being developed for the treatment of autoimmune and other diseases.
Meanwhile, late last year, the company had inked a deal with Adocia to develop an ultra-rapid insulin, BioChaperone Lispro, for the treatment of type I and type II diabetes.
Lilly currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Cambrex Corp. CBM, ANI Pharmaceuticals ANIP and Cytokinetics Inc. CYTK. All three companies hold a Zacks Rank #1 (Strong Buy).
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