By Colin Kellaher

Eli Lilly & Co. on Tuesday said it signed an expanded agreement with Innovent Biologics Inc. that gives the Indianapolis drugmaker the rights to the cancer drug Tyvyt outside of China.

Eli Lilly said it plans to pursue registration of Tyvyt, which it co-developed in China with Innovent, in the U.S. and other markets.

The company said it will make an upfront payment of $200 million to Innovent, which will also be eligible for up to $825 million in development and commercial milestones, along with royalties on sales.

Eli Lilly and Innovent last year began co-commercializing Tyvyt in China after the drug was approved for relapsed or refractory classic Hodgkin's lymphoma after at least two lines of systemic chemotherapy.

Eli Lilly said both companies will retain the right to study Tyvyt in combination with other medicines as part of their own clinical programs. Innovent, a Suzhou, China, pharmaceutical company, and Eli Lilly have been collaborating since March 2015.

Write to Colin Kellaher at colin.kellaher@wsj.com