China's Yabao Pharma partners with Eli Lilly to develop diabetes candidate

Chinese drugmaker Yabao Pharmaceutical (SSE: 600351) has entered a strategic partnership with US pharma major Eli Lilly (NYSE: LLY) to co-develop Lilly's leading glucokinase activator (GKA), LY2608204, which has completed Phase I studies in the USA in addition to extensive preclinical development for the treatment of diabetes.

Under the terms of the accord, Yabao receives rights to develop and commercialize the GKA compound in China while Lilly retains rights in all other markets. The companies will collaborate to determine a strategic development plan for China, and Yabao will initially be responsible to perform and fund all development, with Lilly having future buy-in options for China. No financial terms of the deal were disclosed.

"Lilly's GKA is an optimized molecule with potential to be best-in-class. Yabao is pleased to be collaborating with Lilly, a global leader in diabetes, to progress the program to its ultimate potential," commented Peng Wang, president R&D, Yabao Pharmaceutical, DDING: "This ground-breaking partnership with Lilly is an important sign of Yabao's growing commitment to partner the best science and leverage Yabao's strong clinical and regulatory capabilities to bring novel pharmaceuticals to patients suffering from serious diseases in China."