Lilly to Offload Chinese Drug Rights, Manufacturing Plant
Lilly plans to present trial results at scientific meetings and publications this year and in 2016.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Eli Lilly and Co. (NYSE: LLY) has announced plans to sell the rights in China for two of its antibiotic medicines, as well as a Chinese manufacturing facility. The deal with Eddingpharm is valued $375 million.
The agreement involves the Chinese rights for Ceclor and Vancocin medicines. The manufacturing facility involved in the deal is located in Suzhou, China and produces Ceclor.
Per the terms of the deal, Lilly will receive an initial deposit of $75 million, followed by a payment of $300 million once the transaction is completed. As part of the sale, all employees at the Ceclor facility, along with certain employees from shared functions, will be offered the opportunity to remain at the facility and continue to work with Eddingpharm.
Lilly says it will provide ongoing services to Eddingpharm for a period of time to ensure continuity of product supply and support a smooth transition of ownership at the facility.
"Lilly remains committed to improving the health of people in China," said Julio Gay-Ger, president and general manager of Lilly China. "This transaction will enable Lilly China to better focus our resources on the exciting new therapies that we are launching in our core therapeutic areas, so that we can bring more life-changing medicines to patients in China."
The deal is expected to close in late 2019 or early 2020.