Biotechnology powerhouse AstraZeneca has inked a landmark licensing agreement with China’s CSPC Pharmaceutical Group Ltd., potentially worth $18.5 billion, aimed at developing and commercializing weight-loss and type 2 diabetes therapies globally, the companies announced Friday.
The deal marks a significant move in Western pharmaceutical investment in China and highlights the growing global race for obesity treatments.
Deal Terms and Milestones
Under the agreement, CSPC grants AstraZeneca an exclusive license to develop, manufacture, and sell the drugs worldwide, excluding China, Taiwan, Hong Kong, and Macau. AstraZeneca will pay $1.2 billion upfront, with up to $3.5 billion tied to research and development milestones, and up to $13.8 billion contingent on global sales performance. CSPC will also receive royalties on commercialized products.
The deal covers eight drug programs, including monthly injectable therapies for obesity and type 2 diabetes. Among these programs, one asset is ready for clinical trials, another is set for phase-one trials, and three additional programs are still in preclinical development.
