Lilly to increase equity position in China's Novast by $20 million

US pharma major Eli Lilly (NYSE: LLY) says it will increase of its network of manufacturing capabilities in the key emerging market of China through an expanded collaboration with Novast Laboratories, a generic and specialty pharmaceutical company based in Nantong, China, which has established high-quality systems and manufacturing facilities for the global and domestic Chinese markets.

Lilly expects its expanded collaboration with Novast to greatly enhance its efforts to build a portfolio of Lilly branded generic medicines in China. The collaboration may also ultimately result in Novast providing local and regional manufacturing capabilities for Lilly's own pipeline of potential new medicines in development.

As part of the agreement, Lilly will increase its equity position in Novast by $20 million. Lilly made an initial equity investment in Novast several years ago through the Lilly venture capital unit, Lilly Asian Ventures.