(Yicai Global) April 24 -- Eli Lilly has inked an agreement with Chinese  player Eddingpharm Group to sell the US firm's rights in the country for  two legacy antibiotics as well as a production facility in the eastern  city of Suzhou.

Shanghai-based Eddingpharm will  pay USD375 million to gain the rights to decades-old Ceclor and  Vancocin, as well as the factory, the Indianapolis-based company said in  a statement, adding that the transaction is slated to close in the  second half of the year or in early 2020 subject to regulatory approval.

The deal will allow all employees at the Ceclor manufacturing plant along  with other workers the opportunity to remain transfer directly to  Eddingpharm.

Lilly will provide ongoing  services to Eddingpharm to ensure continuous product supply and support  the smooth transition of the plant.

The transaction will enable Lilly China to better leverage its resources and  advantages on core therapeutic areas and bring more innovative  medicines to Chinese patients, said Julio Gay-Ger, president and general  manager for Lilly China.

Lilly did not reveal the motivation for the sale.

Editor: William Clegg