Pfizer achieved over $100 billion in revenue in 2022 thanks to its COVID-19 vaccine and oral medication, but has fallen seriously behind in the GLP-1 sector and is eager to fill the gap through acquisitions.
<h4>Key Points:</h4>
<ul>
<li>YP05002 is still undergoing Phase I clinical trials in Australia and is a genuine early-stage product.</li>
<li>FOSUN PHARMA's innovative drug business revenue in the first three quarters grew by 18.09% year-on-year, becoming an important growth engine for the company.</li>
</ul>
Molly
Chinese innovative pharmaceutical companies continue to make breakthroughs in the GLP-1 (glucagon-like peptide-1) sector, with their research results frequently attracting the attention of multinational pharmaceutical giants. Following Hansoh Pharmaceutical granting global rights to its oral GLP-1 receptor agonist HS-10535 to Merck, and Chengyi Biotech's collaboration with AstraZeneca on the small molecule GLP-1 agonist ECC5004, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (2196.HK; 600196.SH) has also reached a significant licensing agreement with Pfizer (PFE.US) in this sector, with a potential total transaction amount exceeding $2 billion.
On December 9, Fosun Pharma announced that its subsidiary, Yaoyou Pharmaceutical, signed a &#34;License Agreement&#34; with Pfizer, granting global exclusive rights to the oral small molecule GLP-1 receptor agonist YP05002 and products containing this active ingredient to Pfizer. Yaoyou Pharmaceutical will receive up to $150 million as an upfront payment, as well as milestone payments based on the clinical and commercialization progress of the licensed product, up to $350 million, and sales milestone payments based on the annual net sales of the licensed product, up to $1.585 billion, with a potential total transaction amount of approximately $2.085 billion.
YP05002 is independently developed by Yaoyou Pharmaceutical and primarily works by activating human GLP-1R to promote insulin secretion from the pancreas and reduce glucagon secretion, suppress gastric emptying and intestinal motility in the gastrointestinal tract, and reduce energy intake by affecting central appetite suppression. It is intended for the treatment of type 2 diabetes, obesity, and related diseases, with potential indications including long-term weight management, type 2 diabetes, and metabolic dysfunction-related fatty liver disease (i.e., non-alcoholic steatohepatitis).
It is worth noting that YP05002 is still undergoing Phase I clinical trials in Australia and is a genuine early-stage product. In the early stages of drug development, the failure rate is high. To mitigate the risk of safety or efficacy issues arising in subsequent clinical trials, Pfizer has also set a &#34;convenience termination right&#34; in this collaboration, meaning &#34;this agreement may be terminated by Pfizer with 60 days' written notice.&#34;
<h4>Pfizer Eager to Fill the Gap</h4>
GLP-1 drugs not only effectively control blood sugar but also show revolutionary effects in the weight loss field, making them one of the hottest sectors in today's pharmaceutical industry. In the first three quarters of 2025, Novo Nordisk's semaglutide achieved total sales of $25.462 billion, a year-on-year increase of 24%, while Eli Lilly's tirzepatide achieved sales of $24.837 billion in the first three quarters, accounting for 49% of Eli Lilly's total revenue, with a year-on-year increase of 125%, making it one of the highest-selling drugs globally
Compared to injectable formulations, oral small molecule GLP-1 drugs have significant advantages. Currently, oral GLP-1 drugs on the market still face challenges such as low absorption rates and the need to be taken on an empty stomach. If small molecule oral weight loss drugs like YP05002 can be successfully developed, it will greatly enhance the convenience and compliance of medication for patients.
Pfizer achieved over $100 billion in revenue in 2022 thanks to its COVID-19 vaccine and oral medications, becoming the world's largest pharmaceutical company. However, it has fallen seriously behind in the GLP-1 race, with its two self-developed candidate products failing due to adverse reactions. Additionally, several key products will have their patents expire in the next three years. Therefore, starting in the second half of 2024, Pfizer has repeatedly sought to supplement its pipeline through acquisitions, including a $6 billion introduction of 3SBio's PD-1/VEGF dual antibody and a $10 billion acquisition of Metsera to obtain several next-generation weight loss drugs. This collaboration with FOSUN PHARMA is also an important measure for Pfizer to fill its gaps.
As an established pharmaceutical company, FOSUN PHARMA is undergoing a business transformation. In the first three quarters of 2025, FOSUN PHARMA delivered a seemingly contradictory performance report, achieving operating revenue of 29.393 billion yuan, a year-on-year decrease of 4.91%, while net profit attributable to the parent company grew by 25.50% due to the sale of subsidiaries and other non-core assets. FOSUN PHARMA explained in its financial report that the revenue decline was mainly affected by centralized procurement of drugs, prompting the company to allocate more resources to innovative drug research and development. In the first three quarters, revenue from innovative drug business exceeded 6.7 billion yuan, a year-on-year increase of 18.09%, becoming an important growth engine for the company

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Pfizer has fallen behind in the GLP-1 race and is supplementing its shortcomings through a licensing collaboration with FOSUN PHARMA. FOSUN PHARMA has granted Pfizer global exclusive rights to the oral small molecule GLP-1 receptor agonist YP05002, with a potential total transaction amount of approximately $2.085 billion. YP05002 is still undergoing Phase I clinical trials in Australia and is an early-stage product. FOSUN PHARMA's innovative drug business revenue grew by 18.09%, becoming the company's growth engine

- Pfizer achieved over $100 billion in revenue from its COVID-19 vaccine and oral treatments in 2022 but has lagged in the GLP-1 space.  
- Fosun Pharma's subsidiary secured a licensing agreement with Pfizer for YP05002, a GLP-1 receptor agonist currently in Phase I trials in Australia, with potential earnings reaching $20.85 billion.  
- The collaboration reflects Pfizer's strategy to enhance its portfolio in the competitive GLP-1 market, while Fosun Pharma focuses on innovation, reporting an 18.09% revenue growth in its innovative drug business.

Pfizer, which has fallen behind in the GLP-1 race, is eyeing FOSUN PHARMA's oral medication