InnoCare Pharma partners with Eli Lilly in drug research deal

Chinese biopharmaceutical company InnoCare Pharma Ltd said on Thursday that it entered into a strategic research collaboration and licensing agreement with Eli Lilly and Company to develop new medicines, with payments potentially reaching about $3.35 billion.

Under the agreement, InnoCare will use its proprietary drug discovery platform and research capabilities to discover and advance compounds against up to five targets, the company said in a statement.

InnoCare is eligible to receive up to $100 million in upfront and near-term payments, and up to approximately $3.25 billion in development and commercial milestone payments, it said.

The Beijing-based company will also receive tiered royalties in the single-digit percentage range based on annual net product sales, according to the statement.

The payments are subject to certain conditions and the final amount remains uncertain, InnoCare said.

InnoCare, which is listed in Hong Kong and Shanghai, focuses on developing innovative medicines for cancer and autoimmune diseases. The company said its pipeline includes three approved drugs — orelabrutinib, tafasitamab, and zurletrectinib — as well as more than 10 innovative drug candidates in clinical development and multiple preclinical programs.

The agreement comes as global pharmaceutical companies have increasingly struck deals with Chinese drug developers to gain access to locally developed drug candidates and research capabilities.

Lilly has also entered into partnerships with other Chinese drugmakers, including Innovent Biologics and Haisco Pharmaceutical Group, in deals announced earlier this year.