Lilly To Sell Two Antibiotics and Mfg Facility in China for $375 MillionBy
Eli Lilly and Company has entered into an agreement to sell the rights in China for two legacy Lilly antibiotic medicines, Ceclor (cefaclor) and Vancocin (vancomcycin), as well as a manufacturing facility in Suzhou, China that produces Ceclor, to Eddingpharm, a Shanghai, China-based specialty pharmaceutical company.
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 Ceclor 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 will provide ongoing services to Eddingpharm for a period of time to ensure continuity of product supply and support the smooth transition of the facility.
The transaction is expected to close in either the latter part of 2019 or early 2020, subject to customary closing conditions and regulatory approval.
Source: Eli Lilly and Company