Sino-US firm Eccogene Inc. has entered into an exclusive licensing agreement with UK pharmaceutical giant AstraZeneca (AZ; NASDAQ: AZN). Under the terms of the agreement, AstraZeneca will take over the development and commercialization rights to Eccogene’s GLP-1 receptor agonist drug candidate, ECC5004, for the treatment of obesity, type 2 diabetes, and associated comorbidities.
Financial Terms and Agreement Details
Eccogene is set to receive an upfront payment of USD 185 million, with the potential to earn up to USD 1.825 billion in future clinical, regulatory, and commercial milestone payments. Additionally, Eccogene will be eligible for net sales-based tiered royalties. This deal is reportedly the largest out-licensing agreement targeting a China-based firm signed this year, according to public data.
ECC5004’s Clinical Progress and Potential
ECC5004 is a once-daily, low-dose, oral GLP-1 receptor agonist currently in Phase I clinical trials for healthy subjects and type 2 diabetes patients in the United States. Preliminary results from the Phase I study indicate that ECC5004 may offer differentiated clinical advantages, is well-tolerated, and can promote the reduction of blood sugar and body weight. This acquisition strengthens AstraZeneca’s existing investigational pipeline in the incretin and non-incretin pathways, which includes a GLP-1/glucagon agonist (AZD9550) and a long-acting amylin analogue (AZD6234).
About Eccogene
Eccogene, based in Shanghai, China, was co-founded in 2018 by two former Eli Lilly scientists, CEO Dr. Zhou Jingye, former head of chemistry at Lilly China from 2012, and CSO Dr. Xu Jianfeng. The company’s focus on innovative drug development has positioned it as a significant player in the global pharmaceutical industry.- Flcube.com
