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Eli Lilly sold rights to two of its legacy antibiotics as well as its Suzhou, China, manufacturing facility, to China-based specialty pharmaceutical company Eddingpharm in a deal worth $375 million.
Eli Lilly announced on April 22, 2019 that it has entered into an agreement with Eddingpharm, a China-based specialty pharmaceutical company, to sell rights to two of the Lilly’s antibiotic medicines-Ceclor (cefaclor monohydrate) and Vancocin (vancomycin hydrochloride)-in China as well as a manufacturing facility in Suzhou, China, that produces cefaclor monohydrate in a deal worth $375 million.
Under the terms of the agreement, Lilly will receive a deposit of $75 million, followed by a payment of $300 million upon successful closing of the transaction. As part of the transaction, all employees at the Suzhou manufacturing facility and certain employees from shared functions will be offered the opportunity to remain at the facility and continue to work with Eddingpharm. Lilly reports that it will provide ongoing services to Eddingpharm for a period of time to ensure continuity of product supply and support the transition of the facility.
The transaction is expected to close in either Iate 2019 or early 2020, subject to customary closing conditions and regulatory approval.
Eddingpharm, headquartered in Hong Kong, manufactures clinical nutrition, antibiotics, respiratory system, nephrology, and cardiovascular pharmaceutical products and has nearly 1500 employees in China.
"Lilly remains committed to improving the health of people in China," said Julio Gay-Ger, president and general manager of Lilly China, in a company press release. "This transaction will enable Lilly China to better focus our resources on the exciting new therapies that we are launching in our core therapeutic areas, so that we can bring more life-changing medicines to patients in China."