US pharmaceutical company Pfizer has agreed to pay up to $2.1 billion to Shanghai-based Fosun Pharma’s unit Yao Pharma for an experimental oral obesity drug, reports the South China Morning Post. The move is part of a 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.
GLP-1 therapies have become incredibly competitive 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.