SHANGHAI, Oct 12 (Reuters) - Eli Lilly and Co has expanded a tie-up up with China-based biopharmaceutical company Innovent Biologics Inc to develop cancer treatments for the fast-growing Chinese market, the two companies said in a joint statement on Monday.

The U.S. drugmaker, which first announced the tie-up earlier this year, said the two companies would work together to develop and commercialise up to three cancer treatments over the next decade for the Chinese and global markets.

Innovent could receive extra payments of up to $1 billion if the cancer products hit certain development, regulatory and sales targets, the statement said.

China is seeing a sharp rise in cancer cases, with around 3 million cases of cancer each year and around 2 million deaths, according to a statement from the country's National Health and Family Planning Commission in September.

Hospital cancer drug raked in sales of about 52 billion yuan ($8.23 billion) in 2014, making it the fourth-largest drug segment in the country, with international firms holding just over a third of the market, according to Deutsche Bank.

The companies said in March Innovent would receive an upfront fee of $56 million.

($1 = 6.3215 Chinese yuan) (Reporting by Adam Jourdan and SHANGHAI newsroom; Editing by Anand Basu)