Lilly Licenses Chinese Compound

Eli Lilly & Co. has acquired the China rights for the cancer drug fruquintinib. A kinase inhibitor that may work on several solid tumors, it was discovered and developed by Shanghai-based Hutchison MediPharma. Under their agreement, Lilly and Hutchison will share future costs of developing the compound in China, where it is undergoing Phase II clinical trials. Hutchison could receive up to $87 million in up-front and milestone payments in addition to royalties on any sales of the drug. Lilly and Hutchison have set up several R&D alliances since 2007.