Under the agreement, Lilly will increase equity position in Novast by $20m with initial equity investment being made in Novast quite a few years ago through the Lilly venture capital unit, Lilly Asian Ventures.
Lilly Emerging Markets senior vice president and president Jacques Tapiero said as the company develops a platform of high-quality Lilly branded generic medicines in China, it is supporting the Chinese governments’ current five-year plan, which calls for significant improvement in the quality of medicines in the pharmaceutical industry.
"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," Tapiero added.
"The additional manufacturing capabilities provided by Novast will allow us to better deliver on that strategy."
According to the agreement, Novast might provide local and regional manufacturing capabilities for Lilly’s own pipeline of potential new medicines in development.
Novast will set up a platform to support Lilly branded generic medicines at its Nantong site while technical support will be provided by Lilly to enhance quality standards.
The companies have selected a primary list of medicines that will be manufactured by Novast once the facilities are operational.
Additional terms of the agreement were kept confidential.