Innovent Biologics (IVBIY) (IVBXF) on Sunday said it signed a deal with Eli Lilly (LLY) to jointly develop experimental medicines targeting cancer and immune-related diseases, extending a partnership that has spanned more than a decade.
The agreement is the seventh collaboration between the two companies and is structured to split development responsibilities by geography. Innovent (IVBIY) (IVBXF) will lead early-stage research and clinical development in China, taking selected programs through proof-of-concept studies. Lilly (LLY) will hold exclusive rights to develop and commercialize the resulting medicines outside Greater China, while Innovent (IVBIY) (IVBXF) will retain rights in the region.
Innovent (IVBIY) (IVBXF) said the arrangement is intended to speed up global development by combining its antibody discovery platforms and local clinical trial execution with Lilly’s (LLY) later-stage development and commercialization capabilities. The structure also allows Innovent (IVBIY) (IVBXF) to advance multiple pipeline assets to mid-stage clinical testing before transferring global rights.
Under the financial terms, Innovent (IVBIY) (IVBXF) will receive an upfront payment of $350 million. The company is also eligible for additional development, regulatory and commercial milestone payments that could total up to about $8.5 billion, depending on the progress and success of the programs. Innovent (IVBIY) (IVBXF) would also earn tiered royalties on sales outside Greater China if products reach the market.
The companies did not disclose how many drug candidates are included in the collaboration or provide timelines for clinical milestones. Both firms said the focus will be on oncology and immunology programs, areas where each has existing research and development activity.