AstraZeneca secures exclusive license for promising oral GLP-1 receptor agonist in bid for weight-loss market

UNITED KINGDOM — AstraZeneca has inked an exclusive license agreement with Shanghai-based biotech Eccogene for ECC5004—an early-stage investigational oral glucagon-like peptide 1 receptor agonist (GLP-1RA) to expand its presence in the burgeoning weight-loss market.

The deal includes an upfront payment of US$185 million, with the potential for future milestones amounting to nearly US$1.83 billion, including clinical, regulatory, and commercial achievements.

Eccogene is also entitled to tiered royalties on net product sales resulting from the collaboration.

AstraZeneca’s investment grants the pharmaceutical giant exclusive global rights to develop and commercialize ECC5004, with the exception of China, where rights will be shared with Eccogene.

The agreement positions AstraZeneca to explore the therapeutic potential of ECC5004 for conditions such as obesity, type 2 diabetes, and other cardiometabolic diseases.

Sharon Barr, AstraZeneca’s Executive Vice President of Biopharmaceuticals R&D, expressed optimism about ECC5004, stating, “We believe this oral GLP-1RA molecule could offer alternatives to current injectable therapies both as a potential monotherapy as well as in combination for cardiometabolic diseases such as type-2 diabetes, as well as for obesity.”

Designed for once-daily oral administration, ECC5004 functions as a small molecule agonist of the GLP-1 receptor. The activation of this receptor stimulates insulin secretion in response to rising blood glucose levels.

Currently undergoing assessment in a Phase I study in the U.S., preliminary data from the trial is deemed promising by AstraZeneca, showcasing ECC5004’s favorable tolerability and encouraging performance in terms of glucose and weight reductions.

Competition in the weight-loss market

AstraZeneca’s move aligns with the industry trend as pharmaceutical companies race to develop innovative therapies to address the increasing global demand for effective weight-loss solutions.

The spotlight on weight-loss solutions intensified following Eli Lilly’s groundbreaking achievement—a recent FDA approval for Zepbound (tirzepatide).

This novel treatment targets two incretin hormone receptors—GIP and GLP-1—with a specific focus on chronic weight management.

AstraZeneca’s strategic move comes in the wake of this milestone, positioning the company to vie for prominence in the evolving weight-loss therapeutics landscape.

Novo Nordisk, a recognized leader in the weight-loss market, reported an astounding 700% surge in sales for its obesity treatment, Wegovy, during the third quarter of this year.

Both Wegovy and Zepbound are tailored for individuals who do not have diabetes but are at risk of health complications due to their excess weight.

The active ingredient in Zepbound, tirzepatide, functions by mimicking a hormone that reduces food cravings. Notably, tirzepatide is also present in the diabetes medication Mounjaro.

Semaglutide, a key component in Ozempic and Wegovy, operates by suppressing appetite. It mimics a hormone that signals to the brain when a person is full, contributing to weight management efforts.

Tirzepatide, however, takes it a step further by mimicking a second hormone, GIP, which not only reduces appetite but may also enhance the body’s ability to break down sugar and fat, amplifying the overall impact on weight loss.

Despite the promise of these innovative therapies, a significant hurdle remains—affordability. Eli Lilly has priced Zepbound at approximately US$1,060 for a month’s supply, presenting a relatively more economical option compared to Wegovy, priced at around US$1,300.

However, the high costs of these medications pose challenges for many eligible individuals, exacerbated by the reluctance of insurance companies to cover weight-loss medications. Furthermore, Medicare, by law, does not extend coverage for these treatments.

Despite the competition, AstraZeneca’s strategic acquisition of ECC5004 positions it strategically in the rapidly growing weight-loss market.

The company aims to leverage the oral GLP-1RA molecule’s differentiating clinical profile to capture a share of the anticipated market growth.

Industry analysts project substantial growth in the weight-loss market, with estimates ranging from US$100 billion to as high as US$200 billion in the coming years.

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