After a competitive effort to acquire Metsera, Pfizer has entered into another significant agreement in the obesity drug market. The company announced a licensing deal with YaoPharma, a Chinese pharmaceutical firm, valued at up to $1.9 billion for an investigational GLP-1 receptor agonist called YPO5002.
Pfizer will pay YaoPharma $150 million upfront as part of the arrangement. Additional payments tied to development, regulatory milestones, and commercialization could bring the total value of the deal to $1.9 billion. YaoPharma, which is a subsidiary of Fosun Pharma, will complete an ongoing Phase I trial of YPO5002 before Pfizer takes over further development and eventual commercialization.
BMO Capital Markets analysts commented on the transaction: “The $150M upfront payment reflects prudent capital conservation,” especially after Pfizer’s recent acquisition efforts involving Metsera. They added: “Limited information is available on YP05002, but we view obesity diversification as promising in the short term.”
YPO5002 is currently being tested in a Phase I trial involving 76 patients in Australia across three ascending doses. The study is expected to conclude by April 2026.
Analysts noted that Pfizer has faced setbacks with its own GLP-1 molecules developed internally—specifically lotiglipron and danuglipron—and suggested that YPO5002 may have structural similarities with Eli Lilly’s orforglipron, which was licensed from Chugai in 2018 and is now nearing regulatory submission. Eli Lilly plans to seek FDA approval for orforglipron by year-end.
Pfizer intends to evaluate YPO5002 alongside PF-07976016, its only remaining internal obesity asset following the discontinuation of danuglipron due to liver toxicity concerns earlier this year. PF-07976016 is currently undergoing Phase II trials scheduled for completion soon.
The new partnership follows an active period for Pfizer in obesity drug development. In April, Pfizer halted work on danuglipron because of safety issues, leaving PF-07976016 as its sole candidate until it sought external opportunities. Five months later, Pfizer pursued Metsera—a biotech startup focused on next-generation obesity treatments—for $4.9 billion but faced competition from Novo Nordisk during a high-profile bidding war that included escalating offers and regulatory scrutiny from the FTC.
Ultimately, Pfizer secured Metsera for $10 billion. Through this acquisition, it gained access to key assets such as MET-097i (a long acting GLP-1 receptor agonist) and MET-233i (an amylin analog), along with two oral GLP-1 therapies expected to enter clinical trials soon.
At a conference earlier today, Pfizer CEO Albert Bourla said: “Metsera’s therapies could begin hitting the market in 2028.”
