Pfizer Inc. entered into an exclusive licensing agreement with YaoPharma, a subsidiary of Shanghai Fosun Pharmaceutical, to develop and commercialize YP05002, a small‑molecule GLP‑1 receptor agonist that is currently in Phase 1 trials. The deal provides Pfizer with an upfront payment of $150 million and the right to receive up to $1.94 billion in milestone payments, along with tiered royalties, for the candidate’s development and eventual commercialization.
The transaction follows Pfizer’s recent $10 billion acquisition of Metsera, which added both injectable and oral obesity candidates to the company’s portfolio. By adding YP05002, Pfizer now has an oral small‑molecule that could offer a more convenient alternative to the injectable GLP‑1 therapies that dominate the market, such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound. The company also plans to evaluate YP05002 in combination with its own GIPR antagonist PF‑07976016, which is in Phase 2, to explore a dual‑target approach that could enhance weight‑loss efficacy.
The deal is part of Pfizer’s broader cardiometabolic strategy, which the company’s chief scientific officer, Chris Boshoff, described as a “strategic priority that could be a key driver of growth.” Boshoff noted that the partnership “complements and strengthens our growing portfolio of novel candidates for treating obesity and its adjacent diseases.” The collaboration also reflects Pfizer’s response to past setbacks in its obesity pipeline, including the discontinuation of oral candidates such as danuglipron and lotiglipron due to safety or efficacy concerns.
Market analysts view the obesity market as a rapidly expanding opportunity, with projections of a $100 billion addressable market by the 2030s and a GLP‑1 receptor agonist segment expected to reach $150 billion. Pfizer’s move to secure an oral GLP‑1 candidate positions it to compete with the current leaders, while the planned combination therapy could differentiate its product in a crowded field.
The licensing agreement underscores Pfizer’s intent to diversify its obesity strategy beyond injectable therapies, leveraging the potential manufacturing and patient‑adherence advantages of an oral pill. By combining YP05002 with PF‑07976016, the company aims to create a dual‑target therapy that could offer superior weight‑loss outcomes, thereby strengthening its competitive stance in the cardiometabolic market.
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