AstraZeneca has acquired a license from Eccogene for an experimental pill, ECC5004, in the obesity treatment market. The pill could have fewer side effects than current injectable treatments, such as Wegovy and rival drug from Eli Lilly.
AstraZeneca will pay $185 million upfront, plus up to $1,825 million based on the clinical, regulatory, and commercial progress of ECC5004.
The drug ECC5004 is part of a class of medications known as GLP-1 receptor agonists, which are effective for weight loss and currently dominated by Novo and Lilly.
AstraZeneca plans to bring the pill to emerging markets, as well as developed ones, to treat obesity, type 2 diabetes, and other cardiometabolic conditions.
Phase II trials will begin in the coming months, and the company expects the production cost to be lower than injectable medications.
AstraZeneca is also exploring other approaches for obesity treatment, including a weekly injection based on two modes of action, including GLP-1 and the amylin hormone, with the goal of achieving greater weight loss focused on fat loss.
The company scrapped two GLP-1 drug candidates earlier this year due to disappointing results in clinical trials.
Demand for obesity drugs has driven Novo to become Europe's most valuable company this year. AstraZeneca, known for its cancer drugs and COVID vaccine, joins the race to develop effective obesity treatments.
With information from: Investing
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