SHANGHAI, Feb 9 (Reuters) - China's Innovent Biologics ( IVBXF )

has struck a new deal with Eli Lilly ( LLY ) to

develop immunology and oncology drugs, under which ‌the U.S.

drugmaker will pay $350 million upfront and as ​much as $8.5

billion more if milestones are ‍met.

Shares in Innovent surged 5% ⁠in ⁠early Monday trade.

Under the agreement, which marks the ‌seventh collaboration

between the two ​firms, Innovent will lead the development of

programs from concept through ⁠the completion of ‍phase ​II

clinical trials in China. Lilly will have an exclusive license

to develop and ‍commercialize the products outside of Greater

China.

"This alliance moves beyond traditional licensing to create

a seamless, end-to-end innovation ecosystem," Innovent CEO

Michael Yu said in ​a ‍statement on Sunday, adding that it also

validates Innovent's research and development ​capabilities.

Innovent has also partnered with Lilly on projects such as

the weight loss drug mazdutide.

In addition to the $8.5 billion in payments tied to

developmental, regulatory and commercial milestones, ​Innovent

will also be eligible for royalties on net sales of products

outside of Greater China.