Abbisko Teams Up With Eli Lilly in Up to $1.9 Billion Oncology Drug Discovery Collaboration
核心洞察
Abbisko will receive an upfront payment and is eligible for up to $1.9 billion in development, regulatory, and commercial milestone payments plus royalties under the new agreement with Eli Lilly.
The Shanghai-headquartered cancer (搜索)-focused biopharmaceutical company will work with Lilly to develop new drug candidates against disease targets selected by Lilly.
This marks the second collaboration between the two companies, following a 2022 agreement to co-develop a novel small-molecule therapeutic.
In the latest China pharmaceutical industry collaboration pact with a global drug leader, Shanghai-headquartered Abbisko Therapeutics (搜索) announced it will work with U.S.-based Eli Lilly and Company to develop new drug candidates with global potential against disease targets selected by Lilly.
Abbisko, a cancer (搜索)-focused biopharmaceutical company, will receive an upfront payment for an undisclosed amount and is eligible to receive up to $1.9 billion in development, regulatory, and commercial milestone payments, along with royalties, according to a company statement. The two companies previously agreed in 2022 to collaborate on the development of a novel small-molecule therapeutic, making this their second partnership.
Founded in 2016 and listed in Hong Kong, Abbisko reported revenue of 612 million yuan (approximately $90 million) last year, representing a 21% increase. Net profit nearly doubled to 55.2 million yuan. The company's shares have declined by 4.5% over the past year, closing at HK$1.05 on Monday. Its investors include funds associated with Morgan Stanley, Allianz, and Qiming Venture Partners.
A Growing Wave of Sino-U.S. Pharma Deals
The Abbisko-Lilly agreement is the latest in a series of high-profile collaborations between Chinese biopharmaceutical companies and multinational drugmakers. In February, Lilly formed a strategic collaboration with China's Innovent Biologics (搜索) to advance novel medicines in oncology and immunology — the seventh agreement between the two companies. Innovent received a $350 million upfront payment from Lilly and subsequently entered a global licensing agreement with Pfizer in May.
Pfizer has also been notably active in China. In February, Hangzhou Sciwind Biosciences and Pfizer China announced a partnership on the commercialization of a new-generation weight management and diabetes treatment, in a deal worth up to $495 million for the Chinese company. That agreement followed Pfizer's completion of its Metsera acquisition in the U.S. and a global licensing agreement with China's YaoPharma, a subsidiary of Shanghai Fosun Pharmaceuticals.
In July, Pfizer deepened its China presence through an agreement with Shenyang-headquartered 3SBio aimed at cancer (搜索) medicines, under which 3SBio was to receive a payment of $1.25 billion and Pfizer would purchase $100 million of 3SBio shares.
AstraZeneca has also expanded its footprint, announcing plans to invest $15 billion in China through 2030 to expand medicine manufacturing and R&D, alongside a strategic collaboration with CSPC Pharmaceuticals to advance multiple next-generation therapies for obesity (搜索) and type 2 diabetes (搜索) across eight programs.
China's Evolving Role in Global Pharma
The growing collaboration between Chinese and international pharmaceutical companies underscores a broader industry shift. Shanghai Fosun Pharmaceuticals Chairman Chen Yuqing noted in a recent interview that China is transitioning from "a follower to a leader in global pharma."
Sino-U.S. collaboration in oncology carries particular significance: China and the United States rank first and second globally in annual cancer (搜索) deaths, underscoring the shared disease burden that drives these partnerships. Pfizer, which has nearly four decades of history in China and a presence in more than 300 cities, exemplifies the deepening ties between the two pharmaceutical markets.