Chi-Med Announces Drug Discovery and Development Agreement with Eli Lilly and Company
Chi-Med, the Hutchison Whampoa backed pharmaceutical and healthcare Group, announced that its wholly-owned drug R&D subsidiary, Hutchison MediPharma R&D Limited ("Hutchison MediPharma"), has entered into a drug discovery and development agreement with Eli Lilly and Company ("Lilly").
Under the agreement, Lilly and Hutchison MediPharma will initially collaborate on the discovery and development of pharmaceutical agents focused on targets in oncology and inflammation. Hutchison MediPharma will assume primary responsibility for the discovery phase activities necessary for the identification and selection of several clinical candidates and Lilly will be responsible for ongoing technical advice and the subsequent Investigational New Drug filing and clinical development of these candidates. The research partnership leverages the strengths and expertise of the two companies while taking advantage of the unique opportunities available in China to expedite the drug discovery process, and reduce overall cost.
Hutchison MediPharma will receive from Lilly an upfront payment and annual R&D support fees, as well as potential discovery and development milestone payments depending on the candidate of up to a range of US$20 million to US$29 million per candidate, and potential royalties on worldwide sales of any commercialised products resulting from the collaboration. In the event that Lilly exercises its option not to move forward with a candidate, Hutchison MediPharma will itself be able to take the findings and continue with the candidate. Detailed financial terms are not disclosed.
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