adding China sales estimates and comment from Jefferies analyst

By Andrew Silver

SHANGHAI, June 30 (Reuters) - Eli Lilly LLY.N has transferred the mainland China commercialization rights for its breast cancer drug Verzenios to Innovent Biologics, the Chinese drugmaker said on Tuesday, as its U.S. partner grapples with generic competition in the world's second-largest pharmaceutical market.

Innovent 1801.HK said in a statement it had entered into an agreement that grants it sole commercialization rights for Verzenios, which Lilly has also called Verzenio, in mainland China, adding that Lilly would continue manufacturing, supplying and developing the drug. It did not give financial terms.

Lilly did not immediately respond to a Reuters request for comment on what would happen to the China sales team for Verzenio, which a post on its official WeChat account said it began supplying in China in 2021.

Verzenios recorded China sales of 1.5 billion yuan ($221 million) in 2025, up from 1.4 billion yuan in 2024, Cui Cui, head of Asia healthcare at Jefferies, told Reuters, citing data provider PharmCube.

Lilly's pullback in a country where more than 350,000 patients are diagnosed with breast cancer annually follows local approval of a generic version from a unit of China's Qingfeng Pharmaceutical Group this year.

"This deal looks like a late-lifecycle management from Lilly’s angle, where Innovent can possibly help through its strong commercial execution locally," Cui said.

Cui added she understood the generic would not be able to launch to the market until Lilly's patent on the compound in China expires in late 2029.

When a drug loses patent protection or exclusivity, many large pharmaceutical companies would try to offload it, Tony Ren, head of Asia healthcare research at Macquarie Capital, told Reuters.

A spokesperson for Innovent did not immediately respond to a Reuters request for comment on generic competition.

Qingfeng Pharmaceutical Group did not immediately respond to a request for comment on generic launch plans.