Regeneron Secures $2B Deal for Hansoh's Obesity Drug, Strengthening Position in Weight Loss Market

Regeneron Pharmaceuticals has made a significant move in the highly competitive obesity treatment market, signing a $2 billion deal with Hansoh Pharma for the rights to a promising GLP-1/GIP receptor agonist. This strategic acquisition positions Regeneron to challenge Eli Lilly's dominance in the rapidly growing weight loss drug sector.

Deal Details and Drug Profile

Regeneron will pay Hansoh Pharma an upfront fee of $80 million for the ex-China rights to HS-20094, a phase 3-stage GLP-1/GIP receptor agonist. The agreement includes potential payments of up to $1.93 billion in development, regulatory, and sales milestones. HS-20094 has already been studied in over 1,000 patients and is believed to have a "potentially similar profile" to Eli Lilly's approved GLP-1/GIP agonist, Zepbound.

Hansoh is currently conducting both a phase 2b study of the drug in diabetes and a phase 3 trial in obesity in China. This advanced stage of development could give Regeneron a significant advantage in bringing a competitive product to market quickly.

Regeneron's Obesity Pipeline and Combination Therapy Approach

The acquisition of HS-20094 complements Regeneron's existing obesity pipeline, which includes the GDF8 antibody trevogrumab. The company recently released interim results from an ongoing phase 2 study, showing that combining trevogrumab with semaglutide (the active ingredient in Novo Nordisk's Wegovy) "helped preserve lean mass while increasing loss of fat mass."

Dr. George Yancopoulos, Regeneron's Chief Scientific Officer, emphasized the potential of this approach, stating, "Despite the transformative impact of recent weight loss therapies, significant unmet needs remain, including the ability to sustain weight loss and maintain muscle mass over time."

Regeneron is also exploring the combination of its anti-activin antibody garetosmab with weight loss treatments to address muscle loss and other obesity-related comorbidities. Dr. Boaz Hirshberg, Senior Vice President for Clinical Development at Regeneron, explained, "In-licensing a late-stage GLP1/GIP agonist will allow us to study combinations with Regeneron's proprietary drugs and drug candidates in order to holistically address muscle loss and potentially other comorbidities of obesity, such as cardiovascular diseases, diabetes and liver conditions."

Industry Competition and Future Outlook

Regeneron's deal with Hansoh highlights the intense competition in the obesity treatment market. Other major pharmaceutical companies, including Roche and Merck & Co., are also pursuing similar strategies to develop combination therapies that can reduce weight while preserving muscle mass.

Roche is combining an injectable dual GLP-1/GIP receptor agonist acquired from Carmot Therapeutics with its own anti-myostatin antibody. Merck & Co. recently paid $112 million upfront for a preclinical GLP-1 drug from Hansoh, aiming to develop treatments with a wide range of cardiometabolic benefits.

As the obesity treatment landscape continues to evolve, Regeneron's latest acquisition and its focus on combination therapies position the company as a strong contender in this rapidly growing market. The race to develop more effective and holistic approaches to weight loss and obesity-related conditions is likely to drive further innovation and investment in the pharmaceutical industry.