AstraZeneca’s share price soared on Thursday after announcing a multibillion-dollar deal with Chinese biopharmaceutical company Eccogene to produce a new drug for diabetes and obesity.
In an update for investors, the multinational pharmaceutical group posts total revenue of $33.8 billion for the first nine months of 2023, up 5%, despite a sharp decline in Covid vaccine sales -19.
AstraZeneca, which rose to prominence during the Covid-19 pandemic by producing one of the first vaccines approved on the market, however said sales of that vaccine had declined by nearly $2.9 billion since then. the beginning of January until the end of September, due to a drop in demand.
However, strong results in other categories saw the Anglo-Swedish company post a positive growth trajectory in the third quarter, with total revenue from non-Covid-19 medicines up 13%. compared to last year.
“Given the dynamics observed since the start of the year, we have revised upwards our forecasts for the full year with regard to total turnover excluding Covid medicines as well as basic EPS “indicates Pascal Soriot, CEO of AstraZeneca, in a press release.
AstraZeneca also announced new investment plans in the research and development (R&D) of its anti-cancer drugs.
“Our portfolio of bispecifics has the potential to replace first-generation checkpoint inhibitors across a range of cancers”also underlines Pascal Soriot.
He adds that the company launched the phase 3 trial of high-potential molecules in the third quarter, which could lead to the upcoming approval of a new oncology drug on the market.
Pascal Soriot also discusses the agreement signed with the Chinese pharmaceutical company Eccogene, with a view to developing a drug using a specific molecule which “could represent an important advance, both as monotherapy and in combination, for the estimated billion people living with cardiometabolic diseases such as type 2 diabetes and obesity”.
New drug for obesity and diabetes
AstraZeneca pays $185 million upfront to its new Chinese partner, Eccogene, with deal paving the way for new research and development (R&D) to develop new oral drug daily treatment against obesity and type II diabetes.
The small molecule in question in the deal is known as ECC5004.
It acts as a receptor agonist, triggering a biological response in the brain or cells. The development of an oral drug would be a game-changer, since it is so far only available in the form of injections.
The agreement, made public on Thursday, sees AstraZeneca paying $1.825 billion to Eccogene “for future clinical, regulatory and commercial milestones”.