Guangdong Zhongsheng Pharmaceutical Co., Ltd (SHE: 002317) has entered a strategic licensing agreement with Qilu Pharmaceutical Co., Ltd. for RAY1225, an ultra-long-acting dual GLP-1/GIP receptor agonist. The deal, valued at up to RMB 1 billion (USD 144 million), grants Qilu Pharma China commercialization rights while Zhongsheng retains IP ownership and continues to lead clinical development for obesity, type 2 diabetes, and related metabolic indications.
China GLP-1 Market Explosion: Domestic obesity and diabetes therapeutics market projected to exceed $50 billion by 2030; semaglutide (Novo Nordisk) and tirzepatide (Eli Lilly) face supply constraints and pricing pressure, creating window for ultra-long-acting alternatives.
Bi-Weekly Differentiation: RAY1225’s 14-day dosing interval vs. weekly semaglutide and tirzepatide offers compliance advantage in chronic disease management, potentially capturing patients with injection fatigue and healthcare systems seeking reduced nursing costs.
Dual Agonist Efficacy: GLP-1/GIP mechanism demonstrated superior HbA1c reduction and weight loss in global trials (SURPASS program); RAY1225 positions as domestic tirzepatide alternative with localized manufacturing and regulatory pathway.
Partnership Logic: Qilu Pharma brings established diabetes commercial infrastructure and hospital formulary relationships; Zhongsheng monetizes R&D investment while retaining downside protection via milestones and royalties.
Financial & Development Outlook
Phase
Activity
Timeline
Current
Three Phase III trials enrollment completed
Q1 2026
Near-term
Phase III data readout and NDA submission
2026-2027
Regulatory
NMPA approval and pricing negotiation
2027-2028
Commercial
Qilu Pharma launch with Zhongsheng royalty stream
2028+
Expansion
Potential cardiovascular outcome trials and MASH indication
Post-approval
Forward‑Looking Statements This brief contains forward‑looking statements regarding RAY1225 Phase III clinical outcomes, NMPA approval timelines, and commercial performance of the Zhongsheng-Qilu partnership. Actual results may differ due to competitive dynamics with Novo Nordisk and Eli Lilly, pricing pressure in China’s NRDL negotiations, and manufacturing scale-up challenges for ultra-long-acting biologics.-Fineline Info & Tech
