Lilly to sell legacy antibiotics, Ceclor and Vancocin, to China-based partner in $375M deal
More than two years after Lilly partnered with specialty drugmaker Eddingpharm to exclusively distribute its decades-old antibiotics — Ceclor and Vancocin — in mainland China, the US drugmaker is offloading the legacy products to the China-based company in a $375 million deal.
Under the deal, Eddingpharm is also procuring a manufacturing facility in Suzhou, China that produces Ceclor. Lilly $LLY will receive a deposit of $75 million, followed by a payment of $300 million upon successful closing of the transaction, which is expected to consummate in the latter part of 2019 or early 2020.
“Ceclor and Vancocin have been on the Chinese market for more than two decades, treating numerous patients and earning the trust of patients and physicians alike. We are very proud to acquire these two brands and to carry on their legacy,” Eddingpharm chief Xin Ni said in a statement on Monday.
The oral, second generation cephalosporin antibiotic Ceclor was introduced in China in 1993, and glycopeptide antibiotic Vancocin was launched in the region in 1996.