Hutchison MediPharma (HMP), an R&D company majority owned by Chi-Med, has entered a licensing, co-development and commercialization agreement in China with Eli Lilly for Fruquintinib (HMPL-013), a targeted oncology therapy for the potential treatment of various types of solid tumors. Fruquintinib, a selective inhibitor of the Vascular Endothelial Growth Factor ("VEGF") receptor tyrosine kinases, was discovered by HMP and currently is in phase II testing in China.
The costs of future development of Fruquintinib in China, to be carried out by HMP, will be shared between HMP and Lilly. HMP will potentially receive payments of up to $86.5 million, including upfront payments and development and regulatory approval milestones. Should Fruquintinib be successfully commercialized in China, HMP would receive tiered royalties starting in the mid-teens percentage of net sales.
Christian Hogg, CEO of Chi-Med, said, "Our belief is that Fruquintinib has potential activity against multiple tumor types with high incidence rates and may benefit patients with significant unmet medical needs in China. The collaboration with Lilly will allow for Fruquintinib to be developed across various tumor types in China and at a far greater speed than if we went alone."