Chinese biopharmaceutical company Innovent Biologics Inc (HKEX:01801) announced on Sunday that it has agreed a strategic collaboration with US pharmaceutical company Eli Lilly and Company (NYSE:LLY) to advance novel medicines in oncology and immunology.

This is the seventh collaboration between the two companies, deepening a longstanding partnership to deliver new medicines for patients worldwide. Its unique structure establishes a new model for Innovent to accelerate the global development of its innovative pipeline.

Innovent and Lilly will leverage their complementary strengths to accelerate global development of novel medicines. Innovent, drawing on its antibody technology platforms and clinical execution, will lead the development of programmes from concept through clinical proof-of-concept (Phase 2 clinical trial completion) in China. The agreement grants Lilly an exclusive licence to develop and commercialise the programmes worldwide outside Greater China, while Innovent retains rights in Greater China.

Under the terms of the agreement, Innovent will receive a USD350m upfront payment and is eligible to receive development, regulatory and commercial milestone payments totalling up to approximately USD8.5bn based on the achievement of certain future events. Additionally, Innovent will be eligible for tiered royalties on net sales of each product outside of Greater China.