LLY Eli Lilly and Co

LONDON--Hutchison China Meditech Limited (HCM.LN) on Wednesday announced that Hutchison MediPharma Limited, its majority owned drug R&D company, is set to receive $18 million in the second quarter from Eli Lilly & Co. (LLY).

The payments have been triggered by the positive result of the first proof-of-concept study of fruquintinib in the treatment of patients with metastatic colorectal cancer in China.

Fruquintinib, a novel selective inhibitor of the vascular endothelial growth factor receptor tyrosine kinases, was discovered by Hutchison MediPharma Limited.

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-Write to Jana Simmons at jana.simmons@wsj.com

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