AstraZeneca (AZN) Moves Deeper into Weight Loss Market with New $18.5B CSPC Agreement

AstraZeneca (AZN) is making a major push into the fast-growing obesity drug market. The U.K. pharmaceutical giant has signed a collaboration and licensing deal with China’s CSPC Pharmaceuticals, potentially valued at up to $18.5 billion. This deal grants AZN rights to develop and sell CSPC’s long-acting peptide medicines and access to its LiquidGel platform for once-monthly injectable dosing outside Greater China and Taiwan.

The move comes as the company looks to diversify its portfolio beyond cancer and respiratory drugs. Also, it sees obesity treatments as one of the major new opportunities in healthcare.

Also, the alliance was announced alongside a broader $15 billion investment plan by AstraZeneca to advance manufacturing and R&D within China.

Here’s What the Agreement Includes

According to the terms of the deal, AstraZeneca will make a $1.2 billion upfront payment. Also, CSPC is eligible to receive up to $17.3 billion in additional payments if certain development, regulatory, and sales milestones are met. Further, CSPC will receive tiered, double-digit royalties on net sales outside of China. In return, the partnership gives AZN global rights to Eccogene’s experimental oral GLP‑1 therapy.

Importantly, the collaboration includes eight programs and provides access to CSPC’s proprietary LiquidGel platform, which enables once-monthly injectable dosing, an approach that could boost patient adherence compared to daily or weekly injections.

With the obesity drug market expected to surpass $100 billion in the next decade, AstraZeneca is positioning itself to compete with leaders such as Novo Nordisk (NVO) and Eli Lilly (LLY).

Is AZN a Good Stock to Buy Now?

Currently, Wall Street has a Strong Buy consensus rating on AstraZeneca stock based on four Buy recommendations. The average AZN stock price target of $106.75 implies an upside potential of 15.29%.

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