Select Language:
CSPC Pharmaceutical Group has awarded exclusive worldwide rights to a preclinical oral small molecule GLP-1 weight-loss drug and orforglipron derivative to Madrigal Pharmaceuticals. The potential value of this agreement exceeds $2.1 billion USD.
Madrigal will have the rights to develop, produce, and sell SYH2086 globally, while CSPC will continue to manufacture other oral GLP-1 receptor agonists within China, the company announced yesterday. The deal is anticipated to be finalized in the fourth quarter of this year, pending regulatory approval.
As part of the agreement, Madrigal will make an initial payment of $120 million, along with milestone payments and sales royalties that could total up to $2 billion USD.
SYH2086 offers an oral alternative to injectable GLP-1 drugs like Ozempic and Wegovy, aiming to enhance patient convenience and adherence. The company intends to combine SYH2086 with Rezdiffra, an FDA-approved liver disease treatment, to create a once-daily oral therapy targeting metabolic dysfunction-associated steatohepatitis. This combination leverages GLP-1’s weight-loss properties alongside Rezdiffra’s ability to reduce fibrosis.
“Securing global rights to SYH2086 aligns with our long-term strategy to strengthen our leadership in MASH by developing a pipeline anchored by Rezdiffra,” said the CEO of the company. “We believe that combining Rezdiffra with SYH2086 could deliver a best-in-class oral treatment for patients with MASH.”
Clinical trial data from Rezdiffra’s pivotal study suggest that even modest weight loss of 5% can significantly improve its anti-fibrotic effects, supporting the combined approach. Preclinical results for SYH2086 demonstrate strong receptor activity and favorable pharmacokinetics across multiple animal models, with no significant safety issues observed. The compound showed linear pharmacokinetics across a broad dose range, indicating its potential for clinical development, which is planned to begin in the first half of next year.
This transaction further validates Chinese pharmaceutical innovation, especially in novel small molecule drugs, with companies increasingly willing to pay substantial upfront fees for preclinical assets originating from China. CSPC previously licensed a small molecule lipoprotein(a) therapy to AstraZeneca and has licensed a preclinical GLP-1 candidate to Merck recently.
Shares of CSPC, based in Hebei Province, fell 1.3% to HKD 9.97 (roughly USD 1.27) as of 3:50 p.m. in Hong Kong today.
ChatGPT
Perplexity
Gemini AI
Grok AI
