Beijing, China, September 24, 2026
InnoCare Pharma has entered into a strategic research collaboration and license agreement with Eli Lilly and Company to discover and develop new medicines, establishing a potentially significant partnership between the Chinese biopharmaceutical company and the global pharmaceutical leader. Under the agreement, InnoCare will use its proprietary drug discovery platform and research expertise to discover and advance compounds against up to five targets addressing critical unmet medical needs. The collaboration could provide InnoCare with up to $100 million in upfront and near-term payments, as well as approximately $3.25 billion in development and commercial milestone payments, in addition to single-digit tiered royalties based on annual net product sales.
InnoCare to Apply Proprietary Drug Discovery Platform
The collaboration will leverage InnoCare’s established research and drug discovery capabilities to identify and advance potential therapeutic compounds against as many as five targets. The companies have not publicly disclosed the specific targets, indications, or individual development programs covered by the agreement, leaving the scientific scope of the collaboration subject to further development and disclosure. InnoCare is a commercial-stage biopharmaceutical company focused on oncology and autoimmune diseases, with research platforms spanning multiple approaches to innovative drug discovery. The partnership is structured around early-stage research and subsequent development opportunities. InnoCare will contribute its discovery platform and scientific expertise, while Lilly’s involvement provides a pathway for potential advancement of resulting medicines through later development and commercialization. The agreement therefore combines specialized biopharmaceutical research capabilities with global pharmaceutical development infrastructure, a model increasingly used to expand therapeutic pipelines and access external innovation.
Deal Includes Up to $3.25 Billion in Milestones
Financial terms of the agreement include up to $100 million in upfront and near-term payments to InnoCare. The company is also eligible to receive up to approximately $3.25 billion in development and commercial milestone payments, bringing the potential value of the disclosed payments to approximately $3.35 billion. In addition, InnoCare will be eligible for single-digit tiered royalties on annual net product sales for products arising from the collaboration. The milestone component is contingent on the successful progression of the programs through development and commercialization, meaning the maximum potential value represents future payments rather than guaranteed revenue. The agreement’s undisclosed targets and development programs will need to progress through research, development, regulatory, and commercial stages before the associated milestone payments can be realized.
Advertisement
Expanding InnoCare’s Global Biopharma Footprint
The collaboration adds to InnoCare’s broader pipeline and international development activities. The company currently has three approved drugs — orelabrutinib, tafasitamab, and zurletrectinib — more than ten innovative drug candidates in clinical development, and multiple preclinical programs. Its research and operating presence spans Beijing, Nanjing, Shanghai, Guangzhou, Hong Kong SAR, and the United States. The partnership also comes as InnoCare continues expanding its oncology and autoimmune research portfolio. Earlier in September 2026, the company announced that China’s National Medical Products Administration (NMPA) had approved an Investigational New Drug application for ICP-B381, a novel bispecific antibody-drug conjugate targeting PSMA and STEAP1 for clinical development in solid tumors, including prostate cancer.
For Lilly, the agreement provides access to InnoCare’s drug discovery platform and research capabilities for multiple targets through a partnership structure rather than an outright acquisition. For InnoCare, the collaboration creates an opportunity to advance discovery programs with a major global pharmaceutical partner while retaining potential participation through milestone payments and sales-based royalties. The specific therapeutic targets and resulting candidates will determine the future clinical and commercial impact of the collaboration. Overall, the agreement represents a new cross-border biopharma research collaboration focused on translating early-stage drug discovery into potential medicines. With up to five targets covered and a potential payment structure reaching approximately $3.35 billion, the partnership establishes a broad framework for future drug development while the companies continue to evaluate and advance the underlying research programs.
Source: InnoCare Pharma, Eli Lilly press release
