By Fineline Cube 
China-based CSPC Pharmaceutical Group Limited (HKG: 1093) announced today that it has entered into an exclusive licensing agreement with Madrigal Pharmaceuticals, Inc. (NASDAQ: MDGL). The agreement grants Madrigal exclusive global rights to develop, manufacture, and commercialize SYH2086, an oral small molecule glucagon-like peptide-1 (GLP-1) receptor agonist.
Licensing Agreement Terms
Under the terms of the agreement, CSPC will retain the rights to develop and commercialize other oral small molecule GLP-1 receptor agonist products in China. CSPC is eligible to receive a total consideration of up to $2.075 billion. This includes an upfront payment of $120 million, potential development, regulatory, and commercial milestone payments of up to $1.955 billion, and tiered double-digit royalties on annual net sales of SYH2086.
SYH2086 Development
SYH2086 is a preclinical candidate developed by CSPC with full independent intellectual property rights. It is a novel oral small molecule GLP-1 receptor agonist. Preclinical data demonstrate that SYH2086 exhibits excellent in vitro agonist activity and in vivo glucose-lowering and weight-reducing effects. The compound also shows linear pharmacokinetic (PK) behavior across a wide dose range in various animal species, with no apparent safety risks.-Fineline Info & Tech