Pfizer in diabetes drug deal with Sciwind Biosciences

SHANGHAI, Feb 24 (Reuters) - Pfizer PFE.N has entered an agreement to license Sciwind Biosciences' type 2 diabetes treatment ecnoglutide, with potential payments of up to $495 million if milestones are met, the Chinese drugmaker said on Tuesday.

The deal represents "an important first step to advance Pfizer's global strategy in the metabolic field in China," Sciwind said in a statement on its website.

The Hangzhou-based company's injection belongs to a class of drugs called GLP-1 receptor agonists that has also seen investment from drugmakers including Novo Nordisk NOVOb.CO, Eli Lilly LLY.N, Innovent Biologics 1801.HK and Guangzhou Innogen 2591.HK.

In December, Pfizer licensed from another Chinese drugmaker an experimental GLP-1 drug, a class that works by helping control blood sugar levels while triggering a feeling of fullness.

Ecnoglutide was approved in China in January and Sciwind has also applied in the country to sell an experimental version of the drug for weight management.

Under the agreement with Pfizer, Sciwind is eligible to receive an upfront fee for an undisclosed amount and additional payments tied to regulatory and sales-related milestones. The agreement covers ecnoglutide's commercialisation in mainland China.

A spokesperson for Pfizer declined to comment on the value of the upfront payment, when ecnoglutide would launch and its pricing.

Unlike Novo's Ozempic, Lilly's Mounjaro and Innogen's efsubaglutide alfa, ecnoglutide will not be covered under China's state-run health insurance scheme for type 2 diabetes treatment.