Fosun Pharma Surges as Pfizer Secures Global Rights to New Weight-Loss Drug

Select Language:

Shares of Shanghai Fosun Pharmaceutical soared as much as 6.7% in Hong Kong today following an announcement that the company has granted a major U.S. pharmaceutical firm the worldwide rights to commercialize a new insulin-regulating, weight-loss medication. This innovative drug was developed by one of Fosun’s subsidiaries, in a deal valued at up to $2 billion.

The company’s Hong Kong-listed stock closed the trading day at HKD 22.30 (approximately $2.80), representing a 3.8% increase. Earlier in the day, it peaked at HKD 22.94. Meanwhile, on the Shanghai exchange, the stock finished the day up 3.1% at CNY 28.32 (roughly $4).

Fosun’s subsidiary, YaoPharma, has agreed to grant exclusive global rights to the oral small-molecule GLP-1 receptor agonist YP05002 and any related products to the American drugmaker. This includes rights for development, manufacturing, and commercialization, according to Fosun Pharma.

The agreement includes a non-refundable advance payment of $150 million to YaoPharma. The company also stands to earn milestone payments of up to $350 million as the drug advances through various clinical trial phases and toward commercialization. Once launched, YaoPharma in Chongqing could potentially earn up to $1.5 billion in sales milestones based on the net sales.

YP05002’s active component works by stimulating the human GLP-1 receptor, leading to increased insulin secretion in the pancreas and decreased levels of glucagon. This mechanism helps suppress appetite and lower energy intake by influencing the central nervous system, among other effects. The drug’s potential applications include long-term weight management, type 2 diabetes treatment, and managing metabolic dysfunction-associated steatohepatitis.

Fosun Pharma retains full intellectual property rights to the medication and reports that it is currently in Phase I clinical trials in Australia.

This licensing agreement underscores Pfizer’s confidence in Fosun Pharma’s innovative research and development abilities. It is expected to accelerate the global clinical development and commercialization process, ultimately benefiting patients around the world.