Biopharma companies have committed more funds to obesity and diabetes licensing deals in the first quarter of 2026 than they did throughout all of 2025, according to an Apr. 16 report from J.P. Morgan.
This increase highlights the continued focus on treatments for obesity and diabetes, areas that have seen rapid growth in investment. As of March 31, companies had pledged up to $22 billion in agreements focused on these conditions, exceeding the $20.3 billion recorded for all of last year.
The reported figures include potential milestone and contingent payments that may not ultimately be paid out. However, upfront cash and equity commitments totaled $1.3 billion during the first quarter—almost half the amount seen for all of 2025, which reached $2.9 billion.
J.P. Morgan noted a slowdown in deals specifically targeting GLP-1 and GIP drugs, with only two such contracts signed so far this year compared to eight last year and twelve in 2023. The financial terms for this year's contracts were not disclosed.
"Strategic interest remains high," J.P. Morgan wrote in its report about dealmaking patterns within obesity and diabetes research, "but deal flow is concentrated in a limited number of high-value transactions." The firm did not specify which transactions these were.
Among notable partnerships this quarter was Eli Lilly's agreement with Nimbus Therapeutics at the start of the year; Lilly provided $55 million upfront to collaborate on a preclinical weight-loss program expected to address what both companies described as a "significant unmet need in obesity." Milestone payments could reach up to $1.3 billion under this partnership.
AstraZeneca also entered into a major agreement with CSPC Pharmaceutical from Hong Kong by paying $1.2 billion upfront for exclusive global rights to a long-acting dual GLP-1/GIP drug as well as several other assets focused on weight management; milestones could exceed $17 billion if certain goals are met.
Pfizer made an additional move by agreeing to pay Sciwind Biosciences up to $495 million—including an upfront payment plus regulatory and sales milestones—for access to its GLP-1 injection approved for type 2 diabetes treatment in China and under review there for use against obesity.
