Chinese pharmaceutical company Eddingpharma has agreed to purchase China rights for two off-patent antibiotics and a factory in Suzhou that makes the antibiotics for $375 million.
Under the deal, Eddingpharma will pay $75 million upfront and $300 million to U.S. pharmaceutical company Eli Lilly when the transaction closes.
The move, which will see Eddingpharma buy the two antibiotics, Ceclor and Vancocin, will allow Eli Lilly to concentrate on its core therapeutics areas.
The acquisition is expected close in late 2019 or early 2020. On closure, workers at the Suzhou facility, where Ceclor is produced, will be able to remain at the plant and work with Eddingpharm.