AstraZeneca secures tie-up with Chinese firm for weight loss drugs

Dan Coatsworth, head of markets at AJ Bell, said: “Many people have called weight-loss drugs the biggest opportunity in the healthcare sector for decades. While Eli Lilly and Novo Nordisk have already enjoyed first-mover advantage, it’s no surprise to see multiple other players coming up the rear.

“Among them is AstraZeneca, which had already made in-roads into the space, albeit with early-stage developments rather than a product ready to go. It has now struck a new deal with China’s CSPC on a series of development programmes.

“This builds on earlier news that AstraZeneca will invest $15 billion in China to boost medicines manufacturing and research and development.

“Weight-loss drug usage has dramatically jumped over the past year, and the direction of travel looks like continued rapid growth for years to come if prices come down, efficacy improves, and the way the medicines are administered becomes more convenient. It suggests there is room for more than one player in the market, hence why so many biotechs and big pharma companies are ploughing money into drug developments in this field.

“AstraZeneca is a giant in the world of medicines, and it makes sense for it to turn up the dial on weight-loss drug developments.”