Pharmaceutical giant AstraZeneca (AZN) is expanding its weight-loss and diabetes drug portfolio in a deal with China’s CSPC. In total, the two firms have agreed to develop eight treatments including a ‘clinical-ready’ asset.

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NEXT-GENERATION TREATMENTS

Astra has agreed a deal with CSPC to develop next-generation therapies for obesity and type-2 diabetes. Initially the companies will work on four programmes using CSPC’s advanced AI-driven peptide drug discovery technology.

The UK firm will have exclusive global rights outside China to CSPC’s once-a-month injectable weight-loss portfolio. This includes one clinical-ready asset, a long-acting GLP1R treatment for people living with obesity and weight-related conditions.

Sharon Barr, Astra’s head of biopharmaceuticals R&D, called the deal ‘an important step in creating a portfolio to help people with obesity live healthier lives’.

For to all eight programmes, CSPC will receive $1.2 billion up front and could receive a further $3.5 billion in milestone payments. There are also further payments tied to sales targets, together with royalties.

Nearly three billion people worldwide are classified as obese or overweight, and that number is rising fast. Moreover, individuals with obesity tend to have at least one other comorbidity or complication.

Astra has its own weight-loss drug portfolio and a growing pipeline of next-generation treatments. However, the deal with CSPC takes its offering to the next level in a market which is enormous and still growing.

Read the press release here: https://www.astrazeneca.com/investor-relations.html