SNAPSHOT

AstraZeneca takes a shot on $18B obesity drug deal with China’s CSPC

AstraZeneca struck a landmark deal with CSPC Pharmaceutical worth up to $18 billion, licensing eight experimental obesity and diabetes drugs, the largest such pharma pact since 2025. The deal eclipses 2025's $12.5B GSK-Hengrui agreement in scale, signaling intensified competition in the obesity drug market.

Why it matters: The alliance fast-tracks AstraZeneca into the booming obesity drug market, led by Eli Lilly and Novo Nordisk. The alliance also helps the company close its innovation gap by gaining access to CSPC´s sustained-release tech for its broader pipeline.

Backstory: AstraZeneca announced last week its pledge to invest $15B in China by 2030 and has existing partnerships with CSPC dating back to 2024. This deal reinforces AstraZeneca's footprint in the country, with 16 licensing deals signed with local players since 2023.

Big picture: Global demand for next-generation weight loss therapies is surging, driven by blockbuster drugs like Wegovy and Zepbound. Big pharma is racing to partner with China’s biotech firms, fueling a spike in cross-border licensing.

Zoom in: Among the 8 drugs that AstraZeneca gets rights to, 4 are AI-designed to have slower release and thus extended dosing times for patients. In exchange for these rights, CSPC receives $1.2B upfront, up to $3.5B in R&D milestones, and $13.8B tied to sales and royalties. One lead drug mirrors Zepbound and is entering Phase 1 trials.

What’s next: CSPC is gaining visibility through multiple Western collaborations, having also licensed a weight loss pill to Madrigal and a cancer asset to Radiance last year. Clinical trials for the initial drugs begin soon. AstraZeneca will integrate CSPC's technology across its pipeline while continuing to pursue additional obesity drug assets globally.

SNIPPETS

What’s happening in biotech today?

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🤝 Rare deal: Moderna has out-licensed global commercial rights to its late-stage rare disease candidate mRNA-3927 to Italian drugmaker Recordati for $50 million upfront, with potential for up to $110 million in near-term milestones and additional royalties. mRNA-3927 targets propionic acidemia (PA), a rare metabolic disorder, and has shown a 76% reduction in metabolic decompensation events in early trial data. The pivotal phase of the trial is fully enrolled, with results expected this year. While Moderna retains development responsibilities, Recordati will handle commercialization if approved. The move aligns with Moderna’s strategic focus, as it pulls back from broader rare disease efforts to cut costs.

💸 Half-billion bet: Formation Bio, through its new subsidiary Kenmare Bio, has licensed global rights (excluding Greater China) to FHND5032, an oral small molecule miR-124 activator for autoimmune diseases, from China’s Jiangsu Chia Tai Feng Hai Pharmaceutical in a deal worth up to $500 million. While specific indications weren’t disclosed, FHND5032 has shown promise in preclinical models for ulcerative colitis. Chia Tai Feng Hai will receive an undisclosed upfront payment, milestone payments, royalties, and a minority equity stake in Kenmare. Formation plans to begin clinical trials this year using its AI-driven platform Forge, continuing its strategy of acquiring and accelerating promising global assets.

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