Eli Lilly sell Chinese rights to two antibiotics in deal worth $375 million
pharmafile | April 24, 2019 | News story | Research and Development |
US firm Eli Lilly has agreed to sell the Chinese rights to two of its antibiotics, Ceclor (cefaclor) and Vancocin (vancomycin), to Chinese firm Eddingpharm in a deal worth $375 million.
Alongside the rights to the drugs the deal includes a manufacturing facility in the city of Suzhou, a city of 10.6 million to the west of Shanghai.
According to Julio Gay-Ger, general manager of Lilly China, the transaction “will enable Lilly China to better focus our resources on the exciting new therapies that we are launching in our core therapeutic areas.”
The deal will see Eli Lilly receive a $75 million deposit alongside an additional $300 million upon the closing of the deal.
All employees at the plant which manufactures Ceclor will be offered the opportunity to remain at the facility and to continue working for Eddingpharm.
The deal comes after Eli Lilly granted Eddingpharm exclusive rights to promote and distribute Ceclor and Vancocin in China in 2016.
The deal is expected to close in the latter part of 2019 or the early part of 2020.