Lilly expands China biotech strategy with USD 3.25b InnoCare discovery collaboration
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Eli Lilly has entered a massive $3.25 billion strategic research and licensing collaboration with Beijing-based InnoCare Pharma to discover novel therapeutic compounds.
Beijing-based InnoCare Pharma has entered a strategic research collaboration and license agreement with Eli Lilly and Company under which InnoCare will use its proprietary drug discovery platform to discover and advance compounds against up to five targets addressing 'critical unmet medical needs'. InnoCare is eligible to receive up to USD 100 million in upfront and near-term payments, up to approximately USD 3.25 billion in development and commercial milestones, and single-digit tiered royalties on annual net product sales.
Under the agreement, InnoCare leads discovery and early compound advancement; the press release does not specify how later-stage development and commercialization responsibilities are divided. Geographic rights were not disclosed.
InnoCare describes itself as a commercial-stage company with three approved drugs — orelabrutinib, tafasitamab, and zurletrectinib — more than ten drug candidates in clinical development, and multiple preclinical programs. Its pipeline also includes ICP-B208, a CDH17-targeting antibody-drug conjugate that received IND approval in China in May 2026, described by the company as its second internally developed ADC to enter clinical development.
The agreement adds to Lilly’s growing use of Chinese biotech companies as sources of external innovation, following 2026 collaborations with Innovent Biologics, Abbisko Therapeutics, Haisco Pharmaceutical Group, and others spanning oncology, immunology, and early-stage drug discovery. For InnoCare, the deal extends a broader partnering strategy that has included out-licensing clinical-stage assets as well as discovery-stage collaborations, while allowing the company to leverage its internal research platform beyond programs it advances independently.
