Pfizer Accelerates Obesity Pipeline with New GLP-1 Acquisition
US Drugmaker Pays $150 Million Upfront for Worldwide Rights to Fosun Unit's Drug, Total Potential Value Reaching $1.93 Billion.
Licensing Agreement Details
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Pfizer, the U.S.-based pharmaceutical manufacturer, has signed an exclusive licensing deal with Yao Pharma—a subsidiary of Fosun Pharmaceutical—to secure worldwide development and commercialization rights to a GLP-1 receptor agonist known as YP05002, and any other related GLP-1 agonists under Yao Pharma’s development.
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Pfizer is providing an upfront payment of $150 million to Yao Pharma.
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Yao Pharma stands to receive further development, regulatory, and commercial milestone payments potentially reaching up to $1.93 billion, in addition to tiered royalties on net sales.
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The agreement allows Yao Pharma to complete the ongoing Phase 1 weight management study for YP05002 currently underway in Australia.
YP05002 and Pipeline Strategy
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YP05002 is a small-molecule GLP-1 agonist that Yao Pharma has indicated has therapeutic potential beyond weight loss, including in conditions such as diabetes and metabolic dysfunction-associated steatohepatitis (MASH).
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Pfizer’s strategy includes evaluating YP05002 in combination with its GIPR antagonist, PF-07976016, as well as other small molecules within its development pipeline.
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This transaction follows Pfizer’s recent effort to rebuild its obesity portfolio after discontinuing three previous GLP-1 candidates due to issues such as elevated liver enzymes or insufficient Phase 1 data.
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Recently, Pfizer also successfully secured the ownership of GLP-1 biotechnology company Metsera after a surprise bidding conflict, adding Metsera’s injectable asset, MET-097i (which is in Phase 2b testing and has the potential for once-a-month dosing), to its portfolio.
Strategic Vision
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Chris Boshoff, M.D., Ph.D., Pfizer’s Chief Scientific Officer, reaffirmed that cardiometabolic research is a “strategic priority” expected to be a key driver of growth for the company.
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Dr. Boshoff stated that Pfizer looks forward to contributing its expertise to continue the development of this investigational GLP-1 small molecule, noting that it “complements and strengthens” the company’s growing portfolio of novel candidates for treating obesity and related diseases.
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Liu Qiang, Chairman of Yao Pharma, viewed the partnership as an international recognition of Yao Pharma’s R&D capabilities. He expressed that leveraging Pfizer’s global development experience and commercial network, combined with Yao Pharma’s expertise, will enable the innovative drug candidate to be developed and commercialized more quickly and broadly for the benefit of patients worldwide.
