Pfizer Licenses Weight-Loss Drug Candidate From Fosun Unit

Pfizer is licensing a potential weight-loss drug from a unit of Shanghai Fosun Pharmaceutical in a collaboration potentially worth more than $2 billion for the Chinese healthcare company.

Pfizer on Tuesday said the agreement covers the development, manufacturing and commercialization of YP05002, a GLP-1 receptor agonist currently in Phase 1 development for chronic weight management.

GLP-1 drugs mimics a gut hormone to help suppress appetite.

Pfizer said it will make an upfront payment of $150 million to Fosun's YaoPharma unit for an exclusive worldwide license to YP05002.

The New York drugmaker said YaoPharma will also be eligible to receive up to $1.935 billion in development, regulatory and commercial milestone payments, along with royalties on sales.

Pfizer said the addition of YP05002 complements and strengthens its portfolio of candidates for treating obesity and its adjacent diseases, adding that it plans to study the drug with its PF-07976016 candidate that is currently in Phase 2 development, along with other small molecules in its pipeline.

Write to Colin Kellaher at colin.kellaher@wsj.com