Hanmi Pharm (KRX:128940) granted Eli Lilly worldwide exclusive rights to develop, produce, and market the South Korean drug company's sonefpeglutide biologic drug candidate, according to a Monday news release in Seoul.
The rights do not cover Korea, according to Hanmi.
Hanmi is set to receive a $75 million upfront payment from the U.S. drug company and an additional $1.19 billion in milestone payments from clinical development, regulatory approval, and commercialization.
The South Korean drug company will also be eligible for royalties following the launch.
Sonefpeglutide is a long-acting glucagon-like peptide 2 or GLP-2 that helps with intestinal growth. GLP-2 obtained approval for short bowel syndrome.
Shares rose 6% during afternoon trading on Monday.