Nuochengjianhua (688428.SH) plans to cooperate with Eli Lilly to develop potential R&D and commercialization milestones of innovative drugs, with a payment of approximately US$3.25 billion

Zhitongcaijing · 2d ago

Zhitong Finance App News, Nuocheng Jianhua (688428.SH) announced that Beijing Nuochengjianhua Pharmaceutical Technology Co., Ltd., a wholly-owned subsidiary of the company, signed a R&D cooperation and licensing agreement with Eli Lilly and Company (hereinafter referred to as “Eli Lilly”). The two sides will carry out strategic cooperation in the field of innovative drug research and development. The company will rely on a proprietary drug discovery platform and deep research experience to discover and develop up to 5 innovative target projects to address major unmet clinical needs.

Eli Lilly will pay the company a down payment of up to $100 million and recent milestone payments. The total amount of potential R&D and commercialization milestone payments is approximately US$3.25 billion (all relevant payments must meet applicable conditions and relevant milestone requirements). Additionally, the Company is entitled to charge a single-digit percentage tiered royalty based on the annual net sales of the licensed product.

The signing of this agreement will help the company use its own R&D platform to cooperate with Eli Lilly to develop innovative drugs to provide high-quality treatment options for patients around the world. It is also an important milestone in the internationalization strategy of listed companies, which will help further enhance the international competitiveness and influence of listed companies, and is expected to have a positive impact on the future performance of listed companies.