UPDATE 2-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. "This reflects the classic 'buy the rumour, sell the news' phenomenon," said Tony ⁠Ren, ‌head of Asia ⁠healthcare research at Macquarie Capital, adding that investors appeared to be selling the stock's 26% surge since ‍January 2.

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.