UPDATE 1-China's CSPC Pharmaceutical signs deal with AstraZeneca for weight loss therapy

AstraZeneca will license experimental drugs for obesity and ‌weight-related conditions from CSPC Pharmaceutical Group and collaborate on additional projects, paying $1.2 billion upfront and up to $17.3 billion more ⁠if development and sales milestones are met, the Chinese drugmaker said Friday. The deal is the latest tie-up between the two pharmaceutical giants, following collaboration in ​areas such as artificial intelligence. It expands AstraZeneca's investment in the ‍growing obesity market led by Western rivals. The British-Swedish drugmaker has also licensed an experimental weight-loss pill from China's EccoGene. CSPC shares were down about 10% in Hong Kong after ⁠the announcement. The ‌newly licensed drug ⁠candidates from CSPC include SYH2082, a "clinical-ready" product, and three other pre-clinical products in its ‍injectable weight-management portfolio, the company said in a filing to the Hong Kong ​stock exchange. The agreement covers the development, manufacturing and commercialisation of the ⁠candidates. AstraZeneca has been granted a global license, excluding Taiwan, Hong Kong, Macau, and mainland China.

AstraZeneca ⁠will also collaborate on four additional new programmes with CSPC, using CSPC's proprietary platforms for sustained-release delivery technology and AI-driven peptide drug discovery. AstraZeneca and ⁠CSPC did not immediately respond to requests for comment on whether the licensing ⁠deal was ‌part of a $15 billion investment in China that AstraZeneca announced on Thursday.