Eli Lilly has entered into an agreement to sell the rights in China for two of Lilly's legacy antibiotic medicines, Ceclor and Vancocin, as well as a manufacturing facility in Suzhou, China, that produces Ceclor. The assets will be sold to Eddingpharm, a China-based speciality pharmaceutical company.
Under the terms of the agreement, Lilly will receive a deposit of US$75 million, followed by a payment of $300m upon the successful closing of the transaction. As part of the deal, all employees at the Ceclor manufacturing facility and certain employees from shared functions will be offered the opportunity to remain at the facility and continue to work with Eddingpharm.
Lilly will provide ongoing services to Eddingpharm for a period of time to ensure continuity of product supply and support the smooth transition of the facility.
Julio Gay-Ger, President and General Manager of Lilly China, said: "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."
Mr Xin Ni, CEO of Eddingpharm, said: "Ceclor and Vancocin have been on the Chinese market for more than two decades, treating numerous patients and earning the trust of patients and physicians alike. We are very proud to acquire these two brands and to carry on their legacy."
The transaction is expected to close in either the latter part of 2019 or early 2020, subject to customary closing conditions and regulatory approval. The transaction will not be reflected in Lilly's reported results and financial guidance until closing.
