Eli Lilly and Co. has increased its network of manufacturing capabilities in China by expanding its collaboration with Novast Laboratories, a generic and specialty pharmaceutical company based in Nantong, China. Through the collaboration, Lilly plans to build a portfolio of branded generic drugs in China. Novast may also provide local and regional manufacturing capabilities for Lilly's development pipeline of potential new medicines.
Lilly will increase its equity in Novast by $20 million and Novast has committed to set up a platform to support Lilly branded generic products and increase the manufacturing capacity at its Nantong site to provide technical support enhance quality standards. The two companies have selected an initial list of medicines across multiple therapeutic areas that will be manufactured by Novast once the facilities are operational. Additional terms of the agreement were not disclosed.
"We are excited to expand our collaboration with Novast. As we develop a platform of high-quality Lilly branded generic medicines in China, we are supporting the Chinese government’s current five-year plan, which calls for significant improvement in the quality of medicines in the pharma industry," said Jacques Tapiero, Lilly senior vice president and president of Emerging Markets. "In Lilly's emerging markets business, we are focused on providing patients with innovative medicines from our own pipeline, as well as select Lilly branded generic medicines that meet our quality standards. The additional manufacturing capabilities provided by Novast will allow us to better deliver on that strategy."
"This long-term strategic partnership will combine Lilly's expertise in innovation, commercialization and operations with Novast's strengths in product development and quality manufacturing," said Dr. Guohua Zhang, president and chief executive officer of Novast Laboratories. "We are committed to helping Lilly bring high-quality medicines to patients in China and potentially other countries. We are looking forward to working together constructively and cooperatively in the years ahead to achieve our business objectives.”