Lilly Expands Agreement with Chinese Pharma Company
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Eli Lilly and Co. (NYSE: LLY) says it is expanding a strategic alliance with Innovent Biologics Inc. in China. The pharmaceutical company says the expanded agreement will allow Lilly to obtain an exclusive license to commercialize the TYVYT drug in markets outside of China.
TYVYT is a drug that was co-developed by Innovent and Lilly in China. It received approval by the National Medical Products Association in China for the treatment of relapsed or refractory classic Hodgkin’s lymphoma after at least two lines of systemic chemotherapy.
As part of the expanded agreement, Lilly says it plans to pursue registration of the drug in the U.S. and other markets. As a result, Innovent will receive an upfront payment of $200 million and will be eligible for up to $825 million in potential development and commercial milestones, in addition to tiered double-digit royalties on net sales.
“Our alliance with Innovent successfully brought TYVYT to market in China,” said Anne White, president of Lilly Oncology. “Through this expansion of our collaboration, we hope to make TYVYT accessible to patients globally. We believe TYVYT could deliver significant value to people living with cancer around the world and we intend to continue to study its potential across tumor types.”
Lilly says both companies will also retain the right to study TYVYT in combination with other medicines as part of their own clinical programs. The companies are currently studying the drug as a potential therapy for non-squamous non-small cell lung cancer.
The expanded agreement remains subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.