Fosun Pharma's Subsidiary Yao Pharma and Pfizer Enter into Exclusive Collaboration and License Agreement

Rhea-AI Summary

Fosun Pharma (PFE) subsidiary Yao Pharma and Pfizer (PFE) entered an exclusive global collaboration and license agreement on December 9, 2025.

Yao Pharma will complete a Phase 1 trial of oral small‑molecule GLP‑1R agonist YP05002 in Australia and grants Pfizer an exclusive worldwide license to develop, manufacture and commercialize YP05002 and related oral small‑molecule GLP‑1R agonists for all human and veterinary indications.

Financial terms include an upfront payment of $150 million, up to $1.935 billion in development/regulatory/commercial milestone payments, plus tiered royalties on sales.

Positive

• $150M upfront payment to Yao Pharma
• Up to $1.935B in potential milestone payments
• Exclusive worldwide license covering development, manufacturing, commercialization
• Yao Pharma to complete Phase 1 trial of YP05002 in Australia

Negative

• None.

Key Figures

Upfront payment $150 million Paid by Pfizer to Yao Pharma under the GLP-1 collaboration

Milestone potential $1.935 billion Maximum development, regulatory and commercial milestones payable to Yao Pharma

Market Reality Check

$25.33 Last Close

Volume Volume 44,972,375 is about in-line with recent activity, at a relative level of 0.65x the 20-day average 69,253,412. low

Technical Shares at $25.77 were trading above the 200-day MA of $24.55 before this collaboration news.

Peers on Argus

Peers showed mixed, mostly modest moves: GILD +0.17%, GSK +0.17%, while AMGN -2.39%, SNY -0.43%, BMY -1.02%. This points to stock-specific rather than sector-wide drivers for Pfizer.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 01	Guidance conference call	Neutral	-1.8%	Announcement of upcoming call to provide full-year 2026 financial guidance.
Nov 21	FDA approval	Positive	+2.6%	FDA approval of PADCEV plus Keytruda for muscle-invasive bladder cancer patients.
Nov 13	Strategic acquisition	Neutral	-0.3%	Completion of Metsera acquisition adding late-stage and Phase 1 GLP-1 and hormone assets.
Nov 12	Investor conference	Neutral	+1.4%	Webcast announcement for CFO discussion at a healthcare investor conference.
Nov 04	Earnings and guidance	Positive	-1.5%	Q3 2025 results with $16.7B revenue and raised 2025 EPS guidance.

Pattern Detected

Recent news reactions are mostly aligned with the qualitative tone, except one earnings report where positive guidance coincided with a negative price move.

Recent Company History

Over the last few months, Pfizer has combined financial updates with strategic pipeline expansion. Q3 2025 results showed $16.7B revenue and raised EPS guidance, yet the stock fell. The Metsera acquisition added multiple GLP-1 and hormone programs. An FDA approval for PADCEV plus Keytruda in bladder cancer saw a positive reaction. Against this backdrop, today’s GLP‑1 collaboration further deepens Pfizer’s focus on metabolic and obesity-related treatments.

Market Pulse Summary

This announcement expands Pfizer’s metabolic and obesity portfolio through an exclusive worldwide license to YP05002 and other oral GLP‑1R agonists. Yao Pharma receives an upfront $150 million payment and could earn up to $1.935 billion in milestones plus royalties. In context of recent GLP‑1–focused acquisitions, investors may watch future Phase 1 readouts, subsequent trial phases, and any updates on development timelines and regulatory interactions.

Key Terms

phase 1 clinical trial medical

"Yao Pharma will complete an ongoing YP05002 Phase 1 clinical trial in Australia"

A phase 1 clinical trial is the first stage of testing a new drug or treatment in people, typically involving a small group to assess safety, how the body handles the treatment, and appropriate dosing. For investors, phase 1 results are an early risk check — like a test drive that can reveal fatal flaws or promising signals — and they often cause big changes in a drug’s perceived value and the company’s prospects.

metabolic dysfunction-associated steatohepatitis (MASH) medical

"potential indications including but not limited to ... metabolic dysfunction-associated steatohepatitis (MASH)"

Metabolic dysfunction-associated steatohepatitis (MASH) is a liver condition characterized by inflammation and fat buildup caused by metabolic issues like obesity and insulin resistance. It can lead to liver damage over time, similar to rust gradually weakening metal. Because it is linked to widespread health problems such as diabetes and heart disease, MASH is becoming an important factor in overall health risks and healthcare costs, which can impact economic and investment considerations.

non-alcoholic steatohepatitis (NASH) medical

"metabolic dysfunction-associated steatohepatitis (MASH), also known as non-alcoholic steatohepatitis (NASH)"

Non-alcoholic steatohepatitis (NASH) is a liver condition characterized by inflammation and fat buildup in the liver not caused by alcohol consumption. It can lead to serious health problems like liver scarring or failure if left untreated. For investors, NASH is significant because it represents a growing area of medical need, driving demand for new treatments and innovation in healthcare markets.

AI-generated analysis. Not financial advice.

SHANGHAI, Dec. 9, 2025 /PRNewswire/ -- Fosun Pharma (SSE: 600196; HKEX: 02196) today announced that its subsidiaries, Chongqing Yao Pharmaceutical Company, Limited. ("Yao Pharma"), Shanghai Fosun Pharmaceutical Industrial Development Company Limited, and Pfizer Inc. (NYSE: PFE) have entered into an exclusive collaboration and license agreement. Under this agreement, Yao Pharma grants Pfizer an exclusive worldwide license for the development, use, manufacturing, and commercialization of oral small-molecule glucagon-like peptide-1 receptor (GLP-1R) agonists, including YP05002, and any products containing such oral small molecule GLP-1R agonists as an active ingredient. The license covers all indications for therapeutic, diagnostic, and prophylactic human and veterinary use. Under the terms of the agreement, Yao Pharma will complete an ongoing YP05002 Phase 1 clinical trial in Australia and grants Pfizer an exclusive license to further develop, manufacture and commercialize YP05002 worldwide. Yao Pharma will receive an upfront payment of $150 million and is eligible to receive milestone payments associated with certain development, regulatory and commercial milestones up to $1.935 billion, as well as tiered royalties on sales, if approved.

The licensed small-molecule GLP-1R agonists were independently researched and developed by Fosun Pharma's subsidiary Yao Pharma with proprietary intellectual property rights and are intended for the treatment of metabolic diseases, with potential indications including but not limited to chronic weight management, type 2 diabetes, metabolic dysfunction-associated steatohepatitis (MASH), also known as non-alcoholic steatohepatitis (NASH), among others. YP05002 is currently in Phase 1 clinical development in Australia.

"The partnership with Pfizer marks the international recognition of Yao pharma's R&D capabilities. We firmly believe that only through openness and collaboration can the value of innovation be maximized." Mr. Liu Qiang, Chairman of Yao Pharma, stated, "Leveraging Pfizer's exceptional global development experience and commercialization network, along with Yao Pharma's profound expertise in small molecule R&D and manufacturing, our shared goal is to enable this innovative drug candidate to be developed and commercialized in order to benefit patients worldwide more quickly and broadly."

"The global collaboration with Pfizer is another significant milestone in Fosun Pharma's strategy of innovation and internationalization." Mr. Chen Yuqing, Chairman of Fosun Pharma, said, "Fosun Pharma is committed to addressing unmet clinical needs. We look forward to working with Pfizer to expedite the global development and commercialization of YP05002, with the goal of working toward addressing the challenges of obesity and metabolic diseases for patients in need."

View original content:https://www.prnewswire.com/news-releases/fosun-pharmas-subsidiary-yao-pharma-and-pfizer-enter-into-exclusive-collaboration-and-license-agreement-302636496.html

SOURCE Fosun Pharma

FAQ

What did Yao Pharma and Pfizer announce on December 9, 2025 regarding YP05002 (PFE)?

They announced an exclusive worldwide collaboration and license granting Pfizer rights to develop, manufacture, and commercialize oral GLP‑1R candidate YP05002.

How much did Pfizer pay upfront to Yao Pharma in the December 9, 2025 deal (PFE)?

Pfizer will pay Yao Pharma an upfront amount of $150 million.

What is the maximum milestone potential in the Pfizer–Yao Pharma agreement announced December 9, 2025 (PFE)?

Yao Pharma is eligible to receive up to $1.935 billion in development, regulatory, and commercial milestone payments.

Which indications are targeted by the licensed oral GLP‑1R agonists in the Pfizer deal (PFE)?

The license covers metabolic disease indications including chronic weight management, type 2 diabetes, and MASH/NASH, among others.

What development step will Yao Pharma complete before Pfizer takes over global development (PFE)?

Yao Pharma will complete the ongoing Phase 1 clinical trial of YP05002 in Australia.

Will Pfizer have exclusive global rights to manufacture and commercialize YP05002 after the December 9, 2025 agreement (PFE)?

Yes; the agreement grants Pfizer an exclusive worldwide license to develop, manufacture, and commercialize YP05002 and related oral small‑molecule GLP‑1R agonists.