With $150M upfront, Fosun Pharma’s Yao Pharma inks $2B+ GLP-1 deal with Pfizer

Another significant transaction was secured in the GLP-1 drug class.

Fosun Pharma (600196.SH) has entered into a license agreement with Pfizer for a glucagon-like peptide-1 receptor (GLP-1R) agonist and products containing this active ingredient. Under the agreement, Fosun Pharma's subsidiary Chongqing Yao Pharmaceutical Company, Limited ("Yao Pharma") will receive an upfront payment of USD 150 million. The company is also eligible for potential milestone payments totaling up to USD 1.935 billion, contingent upon the achievement of specified development, regulatory, and commercial milestones, along with tiered royalties on sales following product approval.

On the evening of December 9th, Fosun Pharma announced that its controlled subsidiary Yao Pharma grants Pfizer an exclusive worldwide license for the development, use, manufacturing, and commercialization of oral small-molecule glucagon-like peptide-1 receptor (GLP-1R) agonists, including YP05002, and any products containing such oral small molecule GLP-1R agonists as an active ingredient. The license covers all indications for therapeutic, diagnostic, and prophylactic human and veterinary use.

Regarding the financial terms, Fosun Pharma stated that, according to the agreement, Pfizer will make non-refundable payments of up to USD 500 million to Yao Pharma for this license, consisting of an upfront payment of USD 150 million and development milestone payments of up to USD 350 million. The development milestone payments are contingent upon the clinical trial progress and commercialization of the licensed product in designated key markets—namely the United States, France, Germany, Italy, Spain, the United Kingdom, China, and Japan. Additionally, Pfizer will pay Yao Pharma sales milestone payments of up to USD 1.585 billion, based on the achievement of specified annual net sales thresholds for the licensed product.

YP05002 is an oral small-molecule GLP-1 receptor agonist. Its primary mechanism of action involves activating human GLP-1R to stimulate insulin secretion, reduce glucagon secretion, delay gastric emptying, suppress appetite, and reduce energy intake. It is being developed for the treatment of metabolic diseases, with potential indications including but not limited to chronic weight management, type 2 diabetes, metabolic dysfunction-associated steatohepatitis (MASH), also known as non-alcoholic steatohepatitis (NASH), among others. YP05002 is currently in Phase 1 clinical development in Australia.

"The global collaboration with Pfizer is another significant milestone in Fosun Pharma's strategy of innovation and internationalization.” Mr. Chen Yuqing, Chairman of Fosun Pharma, said, "Fosun Pharma is committed to addressing unmet clinical needs. We look forward to working with Pfizer to expedite the global development and commercialization of YP05002, with the goal of working toward addressing the challenges of obesity and metabolic diseases for patients in need."

Since the third quarter of this year, Fosun Pharma has executed multiple license deals, including agreements with Sitala for FXS6837, intended for the treatment of diseases related to immunomodulation, and with Expedition for XH-S004, intended for the treatment of non-cystic fibrosis bronchiectasis. Under the agreement with Sitala, Sitala will make payments to Fosun Pharma, including a non-refundable upfront payment, development and commercialization milestone payments totaling up to USD 190 million, as well as sales milestone payments of up to USD 480 million. Additionally, under the agreement with Expedition, Expedition will make payments to Fosun Pharma, including a non-refundable upfront payment, development and regulatory milestone payments totaling up to USD 120 million, as well as sales milestone payments of up to USD 525 million.