Eli Lilly outlays $3.35bn for secretive drug discovery pact with China’s InnoCare

US pharmaceutical company Eli Lilly has established a partnership with Chinese biopharmaceutical company InnoCare Pharma for the development of up to five drugs. Under the agreement, Eli Lilly will pay up to $100 million upfront, with an additional $3.25 billion available as development and commercial milestone payments. InnoCare will also be eligible for royalties from drug sales resulting from this collaboration. InnoCare specializes in cancer and autoimmune disease treatments and has three approved drugs in China. This deal continues the trend of increased licensing agreements between US and Chinese biotech companies, which increased by 280 percent between 2020 and 2024. Eli Lilly has already concluded other deals with Chinese partners this year, including a collaboration with Innovent Biologics worth up to $8.5 billion.