Innovent Biologics Inc (HK:1801) saw its shares rise in Hong Kong trading on Monday after disclosing a new collaboration with Eli Lilly and Company (NYSE:LLY) to develop novel therapies in the oncology and immunology areas.
Shares of Innovent climbed as much as 6 percent to reach HK$86.30, a level described as near a one-month high, outperforming a 1.4 percent advance in the Hang Seng index during the same session.
According to the announcement made on Sunday, Innovent will receive a $350 million upfront payment tied to the new agreement with Eli Lilly. In addition to that initial payment, Innovent is eligible to receive up to $8.5 billion in future payments, subject to the terms and milestones set out in the deal.
This arrangement represents the seventh collaboration between Innovent and Eli Lilly. The two companies have entered several drug development and commercialization agreements over the past decade, jointly working on therapies across oncology, diabetes, and antibiotics, the announcement said.
The statement further noted a recurring pattern in the partnership: Eli Lilly typically handles commercialization of the jointly developed treatments outside China.
Market reaction to the announcement drove Innovent shares higher in Hong Kong trading, with the stock’s intraday peak cited at HK$86.30, while the broader Hang Seng index advanced at a lower rate of 1.4 percent.
The new collaboration adds to a series of agreements between the two companies established over the last decade, reinforcing an ongoing working relationship in drug development and the commercialization pathway led by Eli Lilly beyond the Chinese market.
Context limitations - The company’s announcement provides the headline financial terms and the broad therapeutic areas at issue. Details about specific drug candidates, milestone schedules, or timelines were not disclosed in the announcement summarized here.