Pfizer Partners with Chinese Company for New Diabetes Drug Worth Up to $495M

Pharmaceutical giant Pfizer has struck a licensing deal with Chinese biotech firm Sciwind Biosciences for a new type 2 diabetes medication called ecnoglutide. The agreement could be worth up to $495 million if certain development and sales targets are achieved.

Pharmaceutical giant Pfizer has struck a major licensing agreement with Chinese biotech company Sciwind Biosciences to commercialize a new type 2 diabetes medication, with the deal potentially worth up to $495 million based on achieving specific milestones.

According to a Tuesday announcement from the Hangzhou-based firm, the partnership involving their diabetes drug ecnoglutide marks “an important first step to advance Pfizer’s global strategy in the metabolic field in China.”

The medication belongs to a popular category of treatments known as GLP-1 receptor agonists, which has attracted significant investment from major pharmaceutical companies such as Novo Nordisk, Eli Lilly, Innovent Biologics, and Guangzhou Innogen.

This marks Pfizer’s second foray into the GLP-1 drug market in recent months, following a December licensing deal with another Chinese pharmaceutical company for a similar experimental treatment. These medications work by managing blood sugar levels and creating a sensation of satiety in patients.

Chinese regulators gave their approval for ecnoglutide in January, and Sciwind has submitted an application to market an experimental version of the treatment for weight management purposes.

The financial terms include an undisclosed upfront payment to Sciwind, plus additional compensation tied to regulatory approvals and sales performance. The licensing arrangement covers distribution rights for mainland China.

When contacted for additional details, a Pfizer representative declined to reveal the initial payment amount, launch timeline, or expected pricing for the medication.

However, unlike competing treatments such as Novo’s Ozempic, Lilly’s Mounjaro, and Innogen’s efsubaglutide alfa, the new diabetes drug will not receive coverage through China’s government-operated health insurance program for type 2 diabetes care.