Pfizer Secures Rights to Emerging Weight-Loss Pill in Deal Worth More Than $2 Billion

Pfizer has entered into a licensing agreement worth up to $2.1 billion with China-based YaoPharma to develop and commercialize an experimental obesity pill, marking another major step in its renewed push into the fast-growing weight-loss drugs market.

Under the deal, Pfizer will make an upfront payment of $150 million, while YaoPharma — a subsidiary of Shanghai Fosun Pharmaceutical — stands to receive up to $1.94 billion in milestone payouts and tiered royalties if the drug secures regulatory approval.

The candidate targets the GLP-1 hormone, the same mechanism behind Novo Nordisk’s blockbuster obesity injection, Wegovy. However, the pill remains in early-stage development, meaning it could take several years before reaching the market.

For Pfizer, the agreement strengthens and diversifies its obesity pipeline following recent setbacks, including the discontinuation of two earlier oral obesity programs. It also follows Pfizer’s up to $10 billion acquisition of Metsera, an obesity-focused biotech, after a competitive bidding war with Novo Nordisk.

As part of the arrangement, YaoPharma will run a Phase 1 trial, after which Pfizer will lead later-stage development. Pfizer also plans to explore combinations of YaoPharma’s GLP-1 pill with its own mid-stage drug candidate that targets the GIP receptor, another key pathway in metabolic regulation.

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