PFE Stock Gains In Premarket – What Is The Deal With Shanghai Fosun Pharma’s Unit About?

• YaoPharma will complete the ongoing Phase 1 study before handing development rights to Pfizer.
• YaoPharma will receive a $150 million upfront payment and could earn up to $1.94 billion in milestone payments.
• Pfizer said the partnership boosts its cardiometabolic drug pipeline, coming just weeks after it acquired Metsera.

Shares of Pfizer Inc. (PFE) gained 1% in premarket trading on Tuesday after the company announced a tie-up with Shanghai Fosun Pharmaceutical’s unit to develop a chronic weight management drug.

Pfizer signed an exclusive global collaboration and licensing agreement with YaoPharma, a subsidiary of Shanghai Fosun Pharmaceutical, to advance YP05002, a small-molecule GLP-1 receptor agonist being developed for chronic weight management.

The drug is currently in Phase 1 trials and is designed to mimic the GLP-1 hormone, which helps regulate appetite and support weight loss.

“We look forward to contributing our expertise and resources to continue the development of this investigational GLP-1 small molecule, which complements and strengthens our growing portfolio of novel candidates for treating obesity and its adjacent diseases. “Cardiometabolic research is a strategic priority for Pfizer that has the potential to be a key driver of growth for our business,” said Chris Boshoff, Chief Scientific Officer and President, Research & Development, Pfizer.

Terms Of The Deal

Under the deal, YaoPharma will complete the ongoing Phase 1 study before handing development rights to Pfizer. In return, the Chinese subsidiary will receive a $150 million upfront payment and could earn up to $1.94 billion in milestone payments tied to development, regulatory progress, and commercial success, along with royalties on future sales.

Pfizer plans to test YP05002 in combination with its glucose-dependent insulinotropic polypeptide receptor (GIPR) antagonist, PF-07976016, which is now in Phase 2 trials.

Pfizer said the partnership strengthens its push to develop new cardiometabolic therapies. Just last month, the company completed its acquisition of Metsera, a clinical-stage biopharmaceutical firm developing next-generation obesity and cardiometabolic treatments, in a deal worth up to $86.25 per share.

Stock Trades Above Key Technical Indicators

Despite a minor pullback, PFE stock has been on a steady upward trajectory since going past its long-term 200-day moving average (200-DMA) on November 20. It has gained around 10% over the past six months.

PFE is also trading well above its 50-day moving average (50-DMA), a key near-term indicator.

How Did Stocktwits Users React?

Retail sentiment remained in ‘bearish’ territory on Stocktwits over the past 24 hours.

One user on the platform believes that the company's positive news flow is just getting started.

Year-to-date, the stock has declined around 4%.

Read also: Ripple’s $500M Share Sale Draws Wall Street Giants

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