Eli Lilly (LLY, Financials) is turning to Innovent Biologics to handle sales of Verzenio in mainland China. The breast cancer drug has been available there since 2021. Last year, it generated about 1.5 billion yuan, or $221 million, in China sales, according to Jefferies data cited by Reuters.
Innovent will now have the sole right to commercialize the drug in mainland China. Lilly will still manufacture, supply and develop Verzenio.
The handoff comes as Lilly looks ahead to more competition. Chinese regulators have approved a generic version from a Qingfeng Pharmaceutical unit, although analysts expect it may not reach the market until Lilly's patent expires in late 2029.
For Lilly, the move keeps Verzenio in the market while shifting more of the sales work to a local company. For investors, it is a reminder that even strong drugs eventually move into a different phase as patents age and local competition grows.