InnoCare Pharma signs up to $3.35B deal with Eli Lilly; shares surge then plunge
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On September 24, shares of InnoCare Pharma (HK9969) experienced a volatile 'roller-coaster' session on the Hong Kong Stock Exchange. The stock initially surged from a 6.41% loss to a gain of nearly 1.7%, hitting a record high of 35 HKD per share, before reversing sharply to trade down over 10%. The volatility followed a midday announcement that InnoCare's subsidiary had signed a research collaboration and licensing agreement with Eli Lilly (LLY). Under the deal, InnoCare will use its drug discovery platform to develop up to five innovative drug targets. Eli Lilly will pay up to $100 million in upfront and near-term milestone payments, with potential development and commercialization milestone payments totaling approximately $32.5 billion, subject to conditions. InnoCare is also entitled to tiered royalties on net annual sales. The agreement takes effect on September 24, 2026. InnoCare stated the partnership is a key step in its internationalization strategy and is expected to positively impact future earnings. The article notes a similar pattern occurred in October 2025 when InnoCare announced a separate licensing deal with Zenas, where the stock initially rose over 10% before closing down over 6%.
Source report
September 24 — Shares of InnoCare Pharma (HK: 9969) experienced a dramatic "rollercoaster" session on the afternoon of September 24. After opening, the stock surged sharply from a decline of 6.41% to a gain of nearly 1.7%, hitting an all-time high of HK$35 per share. However, the rally quickly reversed, and as of the latest trading, the stock was down more than 10%.
Deal Announcement
At midday, InnoCare Pharma announced that its wholly-owned subsidiary, Beijing InnoCare Pharma Tech Co., Ltd., had entered into a research collaboration and licensing agreement with Eli Lilly and Company (NYSE: LLY). The two companies will engage in strategic cooperation in the field of innovative drug research and development. Under the agreement, InnoCare will leverage its proprietary drug discovery platform and deep research expertise to identify and develop up to five innovative target programs aimed at addressing significant unmet clinical needs.
Financial Terms
- Eli Lilly will pay InnoCare up to US$100 million in upfront and near-term milestone payments.
- Potential research, development, and commercialization milestone payments total approximately US$3.25 billion (all payments subject to applicable conditions and milestone achievements).
- InnoCare is entitled to receive tiered, single-digit percentage royalties on annual net sales of licensed products.
- The agreement takes effect on September 24, 2026, and will remain in force until the end of the royalty payment period for the licensed products, unless terminated early in accordance with the contract.
Company Statement
InnoCare stated that the agreement will enable the company to utilize its R&D platform in collaboration with Eli Lilly to develop innovative drugs and provide high-quality treatment options for patients worldwide. The company described the deal as a significant milestone in its internationalization strategy, expected to enhance its global competitiveness and influence, and to have a positive impact on future financial performance.
Company Background
InnoCare Pharma is an innovative drug company with both domestic commercialization capabilities and overseas growth potential. Its core product, Orelabrutinib (BTKi), has achieved rapid sales growth in China's hematological oncology market, driven by strong efficacy, safety, and differentiated indications. In 2025, the product generated full-year commercialization revenue of RMB 1.41 billion, representing a year-over-year increase of 40.99%.
In August, during an institutional investor survey, InnoCare reported that in the first half of 2026, commercial sales continued to ramp up and its R&D pipeline progressed smoothly. The company achieved total operating revenue of RMB 1.137 billion, up 55.46% year-over-year, including drug sales revenue of RMB 918 million, an increase of 43.18% compared to the same period in 2025. The company remained profitable.
BD Strategy
When asked about potential new business development (BD) transactions, InnoCare stated that globalization remains a core strategic priority for 2026. The company plans to accelerate global market expansion through strategic licensing, joint development, and regional partnerships.
Stock Performance
Since hitting a historical low in June 2024, InnoCare's stock has accumulated gains of over 350%, with a current total market capitalization exceeding RMB 26 billion.
Previous BD Deal Also Triggered Volatility
Notably, InnoCare's last disclosed BD transaction also led to a "rollercoaster" stock movement. On the evening of October 8, 2025, InnoCare announced a licensing agreement with Zenas, under which the core asset was the global development and commercialization rights for its star product, the BTK inhibitor Orelabrutinib, in the field of multiple sclerosis (MS). The total value of that deal exceeded US$2 billion, setting a record for small-molecule licensing transactions in China's autoimmune disease sector.
However, on the day following the announcement (October 9, 2025), InnoCare's shares opened more than 10% higher before rapidly declining, closing down over 6%. The next trading day, the stock fell an additional 9%.
Source
同花顺财经Neutral / independent
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InnoCare Pharma and Eli Lilly sign up to $3.25B drug R&D licensing deal