Pfizer strengthens obesity drug pipeline with USD2B licensing deal with YaoPharma

CHINA— Pfizer has taken another major step into the rapidly expanding obesity treatment market through a licensing partnership valued at up to USD2 billion with YaoPharma, a subsidiary of Shanghai Fosun Pharmaceutical.

Under the agreement, Pfizer has paid USD150 million upfront to secure exclusive global rights to develop, manufacture, and commercialize YaoPharma’s investigational obesity therapy, YP05002.

YaoPharma stands to earn as much as USD 1.94 billion in additional milestone payments tied to development, regulatory, and commercial achievements.

The company will also receive tiered royalty payments based on future global sales if the drug gains regulatory approval.

This collaboration gives Pfizer access to a promising small-molecule glucagon-like peptide-1 receptor agonist (GLP-1RA), a class of medications that has shown significant effectiveness in weight management and metabolic disorders.

According to the agreement, YaoPharma will oversee the initial Phase I clinical trial of YP05002, after which Pfizer will take over the program’s later stages of development.

Pfizer also intends to study YP05002 in combination with its own glucose-dependent insulinotropic polypeptide receptor (GIPR) antagonist, PF-07976016, which is currently being evaluated in a Phase II trial.

The combination strategy underscores Pfizer’s ambition to create new obesity treatment options that could enhance patient outcomes through multi-target therapy.

Dr. Chris Boshoff, Pfizer’s Chief Scientific Officer and President of R&D, expressed optimism about the partnership, noting that the deal strengthens Pfizer’s growing pipeline of obesity candidates.

“We look forward to contributing our expertise and resources to advance this investigational GLP-1 small molecule, which complements and reinforces our expanding portfolio of therapies for obesity and related metabolic conditions,” he said.

He added that cardiometabolic research remains a strategic focus for Pfizer, with strong potential to drive long-term business growth.

The announcement follows Pfizer’s recent involvement in a high-profile bidding war with Novo Nordisk over the acquisition of the New York-based obesity biotech firm Metsera.

Pfizer initially offered USD4.9 billion, but after Novo Nordisk submitted a higher, unsolicited proposal, Pfizer raised its bid to close the deal at USD10 billion.

During the negotiations, tensions escalated when Pfizer accused Novo Nordisk of violating U.S. antitrust laws, describing the rival’s bid as “reckless and unprecedented.”

Pfizer’s aggressive expansion efforts highlight its determination to gain a foothold in a market currently dominated by Novo Nordisk and Eli Lilly.

Both companies lead with their blockbuster GLP-1RA-based drugs — Novo Nordisk’s semaglutide (Wegovy) and Eli Lilly’s tirzepatide (Zepbound).

These injectable treatments have transformed the obesity landscape and delivered multibillion-dollar revenues, with Zepbound alone generating USD3.6 billion in sales during the third quarter of 2025.

Meanwhile, competition in the obesity market continues to intensify. Novo Nordisk is seeking approval for its oral semaglutide formulation for obesity, while Eli Lilly is finalizing its submission to the U.S. Food and Drug Administration for its oral GLP-1RA candidate, orforglipron.

Industry analysts project that the global obesity drug market will exceed USD173.5 billion across seven major markets by 2031, growing at a compound annual rate of 32.3% between 2021 and 2031.