US pharmaceutical behemoth Pfizer has agreed to pay up to US$2.1 billion to Shanghai-based Fosun Pharma’s unit Yao Pharma for an experimental oral obesity drug, underscoring the growing trend of Chinese drug makers selling early-stage assets to global multinationals.
Under the licensing agreement, Yao Pharma would grant Pfizer an exclusive worldwide licence for the development, use, manufacturing and commercialisation of oral small-molecule drugs known as GLP-1 receptor agonists, including YP05002, as well as any products containing such compounds as an active ingredient, according to a statement by Fosun on Tuesday.
GLP-1 therapies have become a competition focus in the global pharmaceutical market, with injectable drugs like Novo Nordisk’s Wegovy and Ozempic, and Eli Lilly’s Zepbound and Mounjaro generating billions of dollars in annual revenue.
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The licensed drug candidate YP05002 is undergoing Phase 1 clinical development in Australia for chronic weight management.
Yao Pharma is expected to receive an upfront payment of US$150 million and become eligible for milestone payments of up to US$1.9 billion tied to development, regulatory and commercial achievements, plus tiered royalties on future sales.
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