As competition in the weight-loss drug market intensifies, multinational pharmaceutical giants are increasingly focusing on Chinese assets in this sector. On February 25, after the opening of Asia-Pacific stock markets, shares of United Lab (3933.HK) rose steadily, with prices surging more than 7% in the afternoon. The previous day, United Lab released mid-stage clinical trial data for its next-generation triple-target weight-loss drug UBT251 in China. The injectable drug, administered once weekly, showed an average weight reduction of 19.7% in the treatment group after 24 weeks of continuous dosing, compared to just 2% in the placebo group. An endocrinology expert not involved in the trial described the results as "very impressive," highlighting the potential of China-developed next-generation weight-loss medications. Notably, in March last year, Novo Nordisk entered into a licensing agreement with United Lab for UBT251, involving an upfront payment of $200 million and a potential total transaction value of up to $2 billion. UBT251 is an investigational next-generation weight-loss drug targeting GLP-1/GIP/GCG receptors, potentially offering superior weight reduction compared to Eli Lilly's dual-target GLP-1 drug. These positive clinical results also bring hope to Novo Nordisk, which recently suffered a setback in a head-to-head trial comparing its drug with Lilly's tirzepatide, causing a sharp drop in its stock price. Novo Nordisk stated it has initiated a global trial involving approximately 330 overweight or obese patients receiving different doses of UBT251 over 28 weeks, with results expected in 2027. The company also plans to start a clinical trial for type 2 diabetes patients. Amid growing competition, multinational pharmaceutical companies are increasingly targeting Chinese weight-loss drug assets. On February 24, Chinese weight-loss drug developer Sciwind Biosciences announced a strategic collaboration with Pfizer China, granting Pfizer exclusive commercial rights for its core GLP-1 product in mainland China, in a deal potentially worth nearly $500 million. In December last year, Pfizer also reached a licensing agreement with a subsidiary of Fosun Pharma for global exclusive rights to an oral small-molecule GLP-1 receptor agonist, with a total transaction value exceeding $2 billion. In July last year, CSPC Pharmaceutical licensed an oral small-molecule GLP-1 receptor agonist to Madrigal for $2.075 billion. Earlier this year, CSPC also licensed another next-generation dual-target weight-loss injection to AstraZeneca. Currently, GLP-1 drugs developed by local pharmaceutical companies including Hengrui Pharmaceuticals, Hansoh Pharma, and Chengyi Biologics have already entered international markets through out-licensing agreements. "The value of China's innovative drugs is being reassessed by multinational pharmaceutical companies," commented a biopharmaceutical investor. "Next-generation weight-loss drugs represent a crucial strategic component in multinational companies' R&D pipelines, with enormous market potential." An analysis report from investment bank Goldman Sachs predicted last year that the global market for GLP-1 drugs could reach $95 billion by 2030, potentially expanding to $120 billion by 2035.
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