Eli Lilly Sells Antibiotic Brands and China Manufacturing Facility to Eddingpharm for $375 Million

On April 23, 2019, VCBeat New Medicine (WeChat ID: biobeat1) learned that Eli Lilly and Company (NYSE ticker: LLY) announced today that it had signed an agreement with China-based Yiteng Pharmaceutical to sell the rights to its antibiotic products Ceclor and Vancocin in mainland China, as well as the Ceclor manufacturing plant located in Suzhou.

Under the terms of the agreement, Eli Lilly will receive an upfront payment of $75 million and a subsequent payment of $300 million upon the successful closing of the transaction. As part of this deal, all employees at the Ceclor manufacturing plants and affected functional departments will have the opportunity to continue working at the facilities for Yiteng Pharmaceutical. Eli Lilly will provide support to Yiteng Pharmaceutical during the upcoming transition period to ensure a smooth handover of operations and maintain a continuous supply of Ceclor.

In late 2016, Eli Lilly sold the promotion and distribution rights in mainland China for two of its flagship antibiotic products, Ceclor and Vancocin, to Eddingpharm. Both Ceclor and Vancocin are long-established products in Eli Lilly’s portfolio, having entered the Chinese market in 1993 and 1996, respectively. They have been actively marketed in China for over two decades and are now off-patent. Andreas Barwick, President of Eli Lilly China, stated that the divestiture of rights to these off-patent drugs was intended to raise capital for the research, development, and launch of other products with faster growth potential.

Mr. Julio Gay-Ger, President and General Manager of Eli Lilly China, stated, “Eli Lilly China has consistently supported the development of local healthcare enterprises. We are thrilled to deepen our collaboration with Eddingpharm through this transformative initiative. Through this transaction, we will work closely with Eddingpharm to help it become a high-quality manufacturer of antibiotic drugs. Meanwhile, Eddingpharm’s continued investment in Suzhou and its established market coverage will also help benefit more patients in China.”

Mr. Ji Liwen added, “This initiative will also enable Eli Lilly China to concentrate its resources and strengths on key therapeutic areas, focus on exciting new opportunities and therapies, and thereby bring more innovative medicines to patients in China.”

Mr. Ni Xin, CEO of Eddingpharm, stated, “Ceclor and Vancocin have been marketed in China for over 20 years, bringing significant benefits to countless patients and earning the trust of both physicians and patients. We are proud to acquire these two brands and continue their legacy. We remain committed to maintaining high operational standards to provide Chinese patients with the highest-quality medications.”

The transaction is expected to be completed in the second half of 2019 or early 2020, subject to customary closing conditions and regulatory approvals. Prior to the completion of the transaction, Eli Lilly will not disclose it in its annual performance reports or financial guidance.

As a global leader in the healthcare industry, Eli Lilly and Company is dedicated to rewarding patients with innovation and caring for lives with compassion. For over a century since our founding, we have consistently upheld the philosophy of providing patients with the highest-quality medicines through the latest technologies, a principle that aligns seamlessly with the commitment made by our founder, Colonel Eli Lilly. Today, we remain steadfast in this mission, guiding all our operations. Lilly employees around the world are not only devoted to researching and developing life-saving medicines and actively helping patients better understand and manage their diseases, but also wholeheartedly giving back to society through charitable and public welfare initiatives.

Reprinted from: PR Newswire

Source: Eli Lilly and Company