Pfizer, YaoPharma Sign Global Deal for Oral GLP-1 Candidate

Pfizer has signed an exclusive global collaboration and license agreement with YaoPharma, a subsidiary of Shanghai Fosun Pharmaceutical, to advance the development of YP05002, an oral GLP-1 receptor agonist in Phase 1 studies for chronic weight management.

“Cardiometabolic research is a strategic priority for Pfizer. This collaboration aligns with our goal to develop multiple treatments and modalities for #obesity and #cardiometabolic disease to help address critical gaps in patient care,” writes Chris Boshoff, Chief Scientific Officer, Pfizer, on LinkedIn.

The agreement gives Pfizer global rights to further develop, manufacture, and commercialize the compound once YaoPharma completes the ongoing Phase 1 clinical trial. Pfizer said the asset will support its strategy to expand its cardiometabolic pipeline, an area the company has identified as a potential driver of long-term growth.

“We are excited to contribute our expertise and resources to continue the development of this investigational GLP-1 small molecule and our growing portfolio of novel candidates for treating obesity and its adjacent diseases,” writes Boshoff.

Financial terms include a US$150 million upfront payment to YaoPharma. The company may receive up to US$1.94 billion in development, regulatory, and commercial milestone payments, along with tiered royalties on global sales if the drug is approved.

Pfizer also plans to initiate combination studies pairing YP05002 with its GIPR antagonist PF-07976016, which is in Phase 2 development, as well as with other small molecules in its pipeline. The move highlights Pfizer’s broader effort to strengthen its presence in metabolic disease research and expand opportunities for scientific and commercial integration across programs.

The collaboration also has implications for workforce planning and talent allocation as both companies expand activities in clinical development, manufacturing, and global commercialization. The agreement signals continued competition in the obesity treatment market, where companies are deploying resources to accelerate development timelines and secure future capacity.

In 2024, more than 1 billion people worldwide were living with obesity, including 880 million adults and 159 million children and adolescents, according to the World Obesity Federation. In Mexico, the condition continues to represent a major public health challenge. A study analyzing data from the National Health and Nutrition Survey (ENSANUT) Continua 2020-2023 reveals that 37.1% of Mexican adults are obese. 

GLP-1 receptor agonists have drawn significant global interest. Although they are primarily approved for type 2 diabetes and obesity, emerging research continues to explore their potential effects beyond metabolic disease. Clinical trials have shown that GLP-1 medications can reduce the risk of major cardiovascular events, such as heart attack and stroke, further broadening scientific interest in their mechanisms.

This momentum has also intensified competition among pharmaceutical companies seeking to expand their presence in the fast-growing obesity and cardiometabolic market. Pfizer has been seeking to strengthen its position in the obesity market. In recent months, the company was involved in a legal dispute with Novo Nordisk over the acquisition of Metsera, a biopharmaceutical firm focused on obesity therapies. 

Other pharmaceutical companies are responding to this momentum. For example, Eli Lilly’s recent move into the trillion-dollar valuation range underscores the shifting market dynamics and the growing financial influence of the global obesity drug segment.

Investor attention is now centered on Lilly’s oral obesity candidate, orforglipron, which is anticipated to receive regulatory approval early next year. Lilly’s orforglipron is set to be among the first oral anti-obesity medications to reach the market, potentially alongside oral semaglutide. As the first small-molecule therapy in this category, it offers advantages in manufacturing efficiency and enables faster scaling of production. Analysts suggest that approval of the therapy could reinforce Lilly’s position in a category projected to grow rapidly over the next decade.

“The company is exploring alternative methods of administering GLP-1 medications beyond injectables, with the goal of achieving scalable production to reach a wider population,” said Karla Alcazar, President and General Manager, Lilly Latin America, during Mexico Health Summit 2025.