In April, President Trump signed an executive order imposing 100% tariffs on patented pharmaceutical imports. The move was intended to compel drug manufacturers to shift production back to American soil—a cornerstone of his America First policy asserting that U.S. medicine should be made domestically.
Two months later, Eli Lilly — one of the nation’s largest pharmaceutical companies — entered into a nearly $3 billion research agreement with Beijing-based Haisco Pharmaceutical.
The deal, finalized on Friday, is valued up to $3 billion and does not specify which diseases the drugs target. Shipments of gray-market GLP-1 medications from China have surged 44% in January alone.
According to Haisco’s press release, the agreement covers “up to five innovative target programs” across multiple therapeutic areas. The arrangement involves a Chinese biotechnology firm developing the treatments and an American pharmaceutical company providing funding. Under the terms, Haisco receives $87 million upfront, with the remainder of the nearly $3 billion contingent on achieving specific milestones and future sales.
Dr. Pangke Yan, chief executive officer of Haisco, stated in the release: “This collaboration is highly aligned with our international development strategy and is expected to generate sustainable value and long-term returns. By partnering with a global biopharmaceutical leader such as Lilly, Haisco aims to accelerate the global development of innovative therapies and deliver high-quality treatment options to patients worldwide.”
