AstraZeneca strikes deal for up to US$18.5 billion to license weight-loss drugs from China's CSPC
The deal builds on existing collaboration between the companies in areas such as artificial intelligence
[SHANGHAI] AstraZeneca will license experimental drugs for obesity and weight-related conditions from CSPC Pharmaceutical Group and collaborate on other projects, paying US$1.2 billion upfront and up to US$17.3 billion more if milestones are met, the Chinese drugmaker said on Friday (Jan 30).
The deal builds on existing collaboration between the companies in areas such as artificial intelligence and a spokesperson for AstraZeneca said it was in addition to a US$15 billion investment in China that the drugmaker announced on Thursday.
The British-Swedish drugmaker is expanding its investment in the growing obesity market led by Western rivals and has also licensed an experimental weight-loss pill from China’s EccoGene.
AstraZeneca executive Sharon Barr said the investments in China are key to supporting the company’s target of launching 20 new medicines by 2030.
For CSPC, it is the largest out-licensing deal the company has ever signed, Macquarie Capital analysts said.
Shares of CSPC, however, were down about 12 per cent in Hong Kong following the announcement, after they had surged 26 per cent since January 2. AstraZeneca’s London-listed shares were up 0.3 per cent on Friday.
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“This reflects the classic ‘buy the rumour, sell the news’ phenomenon,” said Tony Ren, head of Asia healthcare research at Macquarie Capital.
The newly licensed drug candidates from CSPC include SYH2082, a “clinical-ready” product, and three other pre-clinical products in its injectable weight-management portfolio, the company said in a filing to the Hong Kong Stock Exchange.
SYH2082 is designed for once-monthly dosing, which can help patients stick to weight-loss therapy for longer.
The agreement covers the development, manufacturing and commercialisation of the candidates. AstraZeneca has been granted a global licence, excluding Taiwan, Hong Kong, Macau, and mainland China.
AstraZeneca will also collaborate on four additional new programmes with CSPC, using CSPC’s proprietary platforms for sustained-release delivery technology and AI-driven peptide drug discovery.
“With CSPC, we’re exploring mechanisms that allow us to offer better tolerability and more durable responses. And we know that’s important for patients,” said AstraZeneca’s Barr. REUTERS
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