Regeneron Acquires $2B Rights for China Obesity Drug Outside Mainland

Regeneron Pharmaceuticals has entered into a strategic licensing agreement with China's Hansoh Pharmaceuticals to acquire exclusive rights outside China, Hong Kong, and Macau for HS-20094, a dual GLP-1/GIP receptor agonist in late-stage clinical development for obesity. The drug has been studied in over 1,000 patients with promising efficacy and safety data, showing a potentially similar profile to the only FDA-approved GLP-1/GIP agonist, tirzepatide. Regeneron will pay an $80 million upfront fee with potential milestone payments up to $1.93 billion and royalties in the low double digits on global sales. Additionally, Regeneron reported interim Phase 2 trial results showing that combining semaglutide with trevogrumab helped preserve lean muscle mass while increasing fat loss, though adding garetosmab increased adverse events and discontinuations. The company aims to enhance obesity treatment by improving weight loss quality through muscle mass preservation, addressing ongoing unmet needs in obesity management. Analysts currently view Regeneron with an 'Outperform' consensus rating and average price targets suggesting significant upside potential.