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Eli Lilly & Co, one of the world's leading pharmaceutical firms, plans to pour $100 million into China over the next five years to expand its drug research capacity in a bid to tap into the country's talent pool, its COO said.

The US drug maker will primarily beef up its research and development in biology, chemistry and clinical research areas, said John Lechleiter, president and COO of Eli Lilly & Co.

"We'll expand our activities in those areas where we can continue to draw on the country's talent-rich base of researchers and scientists," Lechleiter said. "Lilly has already invested nearly $200 million in the country. We are committed to China."

Eli Lilly is among the growing number of global pharmaceutical giants expanding their R&D capacity in China, drawn by the huge market and talent pool.

Swiss drug maker Novartis AG last year announced it will open a $100 million research center in Shanghai this year.

Roche Holding AG, another Swiss drug maker, already has a research facility in the country.

AstraZeneca Plc, Britain's second-largest drug maker, last year said it will spend $100 million in the next three years in China on research.

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The country's drug market, one of the world's fastest-growing, is projected to expand 16 percent to about $16 billion this year, while worldwide drug sales will rise 6 percent to $685 billion, says research firm IMS Health Inc.

China is expected to become the world's seventh-largest pharma market by 2010 and the second-largest by 2020, according to IMS.

"Lilly is ready to grow together with the market," said Jorg Ostertag, president of Lilly China.

Lilly plans to develop China, now the US drug-maker's 13th-largest market, into one of its top 10 markets by 2010, Ostertag said.

Lechleiter also announced that Lilly Asian Ventures, a newly established spin-off of Lilly Ventures, one of the top venture capital firms in the healthcare industry, made an initial investment of $10 million in Bio Veda China.

Bio Veda is the first international venture capital fund focusing on life sciences investment in China.