Pfizer Acquires Rights to Sciwind’s Weight-Loss Drug in $495M Deal

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Pfizer has secured exclusive rights to commercialize a new Chinese obesity medication, marking a significant move to penetrate China’s rapidly expanding weight-loss drug market. The agreement grants Pfizer exclusive rights in China to a glucagon-like peptide-1 (GLP-1) drug called ecnoglutide, developed by a Chinese biotech company. The deal involves project fees totaling up to $495 million, comprising an upfront payment and additional milestone payments based on regulatory approvals and sales performance.

Ecnoglutide is among a growing roster of GLP-1 drugs available in China. The biotech firm received approval in January to use the drug for treating type 2 diabetes in China, and its application for long-term weight management in adults is currently under review by the country’s health authorities.

Obesity affects approximately 14.1% of Chinese adults and is closely linked to other health issues such as hypertension and high blood sugar. Addressing this health crisis aligns with the government’s Healthy China Initiative, and the new partnership with Sciwind will support these national health objectives.

Obesity is a complex, chronic illness that significantly raises the risk of cardiovascular disease, type 2 diabetes, and certain types of cancers. GLP-1 drugs are an innovative treatment approach for obesity, with five already approved in China, including leading medications like semaglutide from a Danish pharmaceutical company and tirzepatide from an US-based firm.

The entry of more GLP-1 weight-loss drugs has intensified competition in China’s market, resulting in aggressive price reductions at the end of last year—a 50% cut in semaglutide’s price and an 80% reduction for tirzepatide.

While Pfizer has actively sought to enter this lucrative sector, it has had to abandon several potential candidates due to concerns over safety and tolerability issues.

The biotech company holding the rights previously granted exclusive commercialization in South Korea to HK Inno.N and granted exclusivity in all other global markets, excluding China and South Korea, to a UK-based firm.