Eli Lilly (NYSE:
LLY)
has expanded its drug discovery and development partnership with Hutchison China
Meditech Ltd (LSE: HCM) , adding another oncology target to the agenda. When the
two companies set up their partnership last year, the initial areas of
concentration were specified targets in oncology and inflammation.
For
its work, Hutchison MediPharma, the drug discovery division of the company, will
receive an up-front payment, plus potential fees and royalties on worldwide
sales of any products resulting from the collaboration. Further financial
details were not disclosed.
Hutchison China Meditech, also known as
Chi-Med, is a unit of the Hong Kong conglomerate Hutchison Whampoa Ltd (HK:
0013). Chi-Med’s business involves modernized forms of TCMs. Hutchison
MediPharma is the R&D arm of the company, developing TCM-derived botanical,
semi-synthetic natural product drugs and synthetic single chemical entity drugs.
In October, Hutchison MediPharma reported positive results from a Phase
I trial of its herbal-based treatment for ulcerative colitis. The trial was
conducted in China and is serving as a basis for Phase II trials of the drug in
the US and Europe. MediPharma is also starting a Phase II trial of the drug as a
treatment for Crohn’s disease.
More than most big pharmas, Lilly has
done away with the traditional big pharma dependence on in-house research &
development, building instead a network of relationships among independent
companies, as this agreement shows.
