Lilly is investing up to $86 M with Hong Kong's Chi-Med to jointly develop and commercialized fruquintinib for treatment of cancers in China. Chi-Med says the drug has the potential to be an effective treatment for colorectal, lung, breast and gastric cancers. It's a VEGFR 1, 2, and 3 inhibitor derived from Chinese botanicals.
Lilly which has an active cancer portfolio and a poor recent record of getting new drugs to the market is willing to bet its $86 M to gain traction in China. Analysts say the drug could make 10x times that there. In this case, Lilly is equally interested in this investment in helping it to gain traction in China. It's looking for new markets -- as well as -- products to enhance its revenue potential in the near term as it continues to suffer from lost revenues due to patent expirations and failed product after product in its phase III pipeline. See Fierce Biotech.
Posted by Bruce Lehr Oct 15th 2013.