(photo courtesy: Eli Lilly & Co.)

Indianapolis-based Eli Lilly and Co. (NYSE: LLY) has inked a research collaboration and licensing agreement with Regor Therapeutics Group, which is co-located in China and Boston. Lilly says as part of the deal, the companies will work together to discover, develop and commercialize novel therapies for metabolic disorders.

Per the terms of the agreement, Lilly will have a license to select Regor intellectual property, for which it will be responsible for the clinical development, manufacturing and worldwide commercialization, except in China, Macau, Hong Kong and Taiwan.

“Through this collaboration, we will have the opportunity to expand treatment options available to patients suffering from metabolic disorders,” said Dr. Ruth Gimeno, vice president, diabetes research and clinical investigation at Lilly. “Regor’s technology will also allow Lilly to further accelerate innovation and deliver breakthrough therapies in obesity and diabetes.”

Regor will receive an upfront payment of $50 million, with the potential to receive up to $1.5 billion in payments based on the achievement of certain milestones, as well as tiered royalties. The initial payment partially includes an equity investment by Lilly.