Eli Lilly will license the manufacturing know-how for its rheumatoid arthritis treatment to Egypt's Eva Pharma, the companies said on Wednesday, to help localize the drug's production in Africa.

Under the agreement, EVA would supply the drug, Olumiant, in 49 countries across Africa.

Lilly and EVA have been collaborating since 2021. The companies partnered to manufacture insulin in Africa in 2022.

EVA is set to begin sales of locally manufactured Olumiant by 2026 to the African countries.

Olumiant is used for treating rheumatoid arthritis and hair loss caused by an autoimmune disease called alopecia areata. It recorded $922.6 million in sales last year.

(Reporting by Puyaan Singh; Editing by Shilpi Majumdar)