Lilly Strikes Dual Deals with Innovent and Abbisko Within a Week, Reinforcing China Strategy

　　【Pharmaceutical Network | Corporate News] In recent years, global pharmaceutical companies have been intensively launching diversified collaborations to leverage China’s dual advantages in early-stage R&D efficiency and end-market commercialization capabilities. Notably, since late May, Eli Lilly has successively announced partnerships with Innovent Biologics, Akeso Pharma, and Haisco Pharmaceutical Group.
 

On June 30, Eli Lilly and Innovent announced a collaboration agreement under which Eli Lilly will transfer the exclusive commercialization rights for its CDK4/6 inhibitor abemaciclib tablets in mainland China to Innovent, while retaining responsibilities for manufacturing, supply, and further development. Abemaciclib tablets, a CDK4/6 inhibitor developed by Eli Lilly, were approved for marketing in China in 2020. The drug has currently received approval for multiple indications in China, covering adjuvant treatment of early-stage breast cancer and multi-line treatment of locally advanced or metastatic breast cancer.
 

The agreement indicates that Innovent will be responsible for the import, sales, promotion, and distribution of abemaciclib tablets (brand name: Verzenio) in mainland China, holding exclusive commercialization rights; meanwhile, Eli Lilly will continue to serve as the marketing authorization holder, undertaking product manufacturing, global supply, and subsequent clinical development.
 

On June 24, Abbisko Therapeutics announced that it had entered into a strategic research collaboration and license agreement with Eli Lilly. The two parties will collaborate on the development of innovative drugs targeting multiple disease targets, jointly advancing novel candidate drugs with global potential.
 

Under the agreement, Abbisko Therapeutics will receive an upfront payment and will be eligible for further payments upon achieving subsequent development, regulatory, and commercialization milestones, with a potential total value of $1.9 billion. In addition, Abbisko Therapeutics will be entitled to receive tiered royalties based on the annual net sales of products generated from this collaboration.
 

On June 1, Haisco announced that its wholly-owned subsidiary, Haisco Pharmaceutical Technology (Lhasa) Co., Ltd., had recently signed a “License and R&D Collaboration Agreement” with Eli Lilly, marking the commencement of strategic cooperation between the two parties in the research and development of innovative drugs across multiple disease areas.
 

Pursuant to the agreement, Haisco will leverage its small-molecule innovative drug technology platform and new drug development capabilities to be responsible for the discovery and early-stage research and development of innovative drug projects targeting up to five targets selected by Eli Lilly. Eli Lilly holds an exclusive option for each project during the R&D collaboration period. Under this collaboration, Haisco is entitled to receive upfront and near-term payments totaling up to USD 87 million, subsequent milestone payments of up to USD 2.967 billion, and tiered royalties based on future net sales of the products.
 

Industry analysts believe that Eli Lilly’s transfer of the commercialization rights for abemaciclib to Innovent, coupled with its successive collaborations with Allist and Haisco, clearly reveals its “parallel subtraction and addition” strategy in the Chinese market. This approach involves partnering with Chinese biotech platforms at the source of innovation to secure future pipeline reserves, while entrusting the local commercialization of mature blockbuster drugs to leading domestic enterprises, thereby achieving specialized division of labor in both R&D and commercialization.
 

Overall, an increasing number of multinational pharmaceutical companies now regard China as a pivotal hub in their global strategies and are implementing comprehensive layouts across the entire industry chain. In this process, China’s pharmaceutical market is expected to accelerate its transformation into a key engine for global innovation.
 

　　Disclaimer: Under no circumstances shall the information or opinions expressed in this article constitute investment advice for any person.