Pfizer won a bidding war to get the GLP-1 drug that’s the cornerstone of its cardiometabolic drug pipeline. Now the pharmaceutical company has up to $1.5 billion to fund tests of that peptide in obesity and other related indications.
The cash will come from Blackstone Life Sciences. In exchange for the financing, the deal announced after Wednesday’s market close makes the investment firm eligible for milestone payments tied to the regulatory progress and potential commercialization of the drug, berobenatide. Financial details about the milestones were not disclosed, but given the size of the cardiometabolic disease market, those payments could be substantial.
Berobenatide was the lead obesity drug candidate of Metsera, where it was known by the code name MET-097i. This long-acting injectable GLP-1 drug was designed for monthly dosing, making it attractive to Novo, which has been looking for a successor to its weekly injectable GLP-1 obesity drug, Wegovy. Pfizer’s internal research in oral GLP-1 drugs had fallen short, sparking its own search for external assets. About a year ago, Pfizer beat out Novo with a $10 billion offer for Metsera that now gives the pharma company another opportunity in metabolic medicines.
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Pfizer is evaluating berobenatide in a broad clinical program that the company says could grow to more than 20 trials in obesity and related comorbidities, such as knee osteoarthritis and obstructive sleep apnea. Pfizer also says the growing body of evidence supports advancing development of the peptide a monotherapy and in combination with various nutrient-stimulated hormone (NuSH) peptides, including analogs for amylin, a hormone in the body that plays a role in regulating blood sugar and appetite. The Pfizer cardiometabolic pipeline also includes an oral GLP-1 drug acquired last year from Shanghai-based YaoPharma.
In the announcement of the Blackstone deal, Pfizer Chief Financial Officer and Executive Vice President Cecile Guegan said the company is taking “a disciplined approach that pairs internal research investments with targeted investment from capital partners.”
“Today’s announcement helps us advance our comprehensive obesity program and maintain the financial capacity and flexibility to invest in our broader pipeline across all therapeutic areas,” Guegan said.
Novo and Eli Lilly, currently the leaders in peptide drugs for obesity, have gone on to secure regulatory approvals in related indications. Novo’s Wegovy can be used to treat the fatty liver disease MASH; Wegovy pill’s approval for weight management includes use of the drug as way to reduce the risk of major cardiovascular events. Meanwhile, Lilly’s Zepbound has added obstructive sleep apnea to its label.
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While Pfizer touts less burdensome monthly dosing of berobenatide, Lilly’s approach to next-generation metabolic medications aims for better efficacy. Retatrutide, a Lilly peptide engineered to activate the GLP-1, GIP, and glucagon receptors, is in a broad clinical trial program evaluating the drug in both obesity and type 2 diabetes along with related disorders.
Blackstone has reached financing deals with other biopharmaceutical companies. Earlier this year, the firm agreed to provide Apogee Therapeutics with up to $1.3 billion to support late-stage clinical development of its long-acting antibody drug for atopic dermatitis. In exchange, Blackstone would be entitled to royalties from sales of an approved product. Apogee was subsequently acquired by AbbVie for about $11 billion. Blackstone’s agreements with Moderna and Alnylam Pharmaceuticals put the investment firm in line for milestone payments and royalties.
Under the terms the Pfizer/Blackstone deal, funds managed by Blackstone’s perpetual private equity strategy will invest alongside funds managed by Blackstone Life Sciences. If berobenatide achieves milestones, milestone payments will be paid out over a multi-year period. The investment firm does not gain any rights to the drug; Pfizer maintains full control of the asset and all decisions about the clinical program.
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