Armed with AstraZeneca deal, Eccogene files for Hong Kong IPO

The Chinese biotech is developing a weight-loss drug in a tablet form that could challenge leading products in the booming anti-obesity market

Key Takeaways:

• The AstraZeneca licensing deal in 2023 gave Eccogene up to $2 billion in phased and conditional payments
• After four financing rounds, Eccogene’s valuation soared to $498 million within three years

By Molly Wen

Hong Kong’s equity market is poised to welcome another player in the weight-loss business, with the bonus of a Big Pharma partnership.

A Chinese biotech that caused a splash two years ago with a blockbuster licensing deal has applied to list on the main board of the Hong Kong Stock Exchange, offering investors the chance to back another contender in the anti-obesity race.

Founded seven years ago, Eccogene Inc. aims to discover and develop novel small-molecule drugs for cardiometabolic and inflammatory diseases.

In its headline-grabbing deal in 2023, Eccogene sold international rights to an experimental oral obesity drug to AstraZeneca (AZN.L) for up to $2 billion in phased payments. The pharma giant paid $185 million upfront for the right to develop and launch Eccogene’s GLP-1 receptor agonist ECC5004 outside of China, with the potential to hand over another $1.83 billion linked to clinical, regulatory, and sales milestones.

The drug in question would be administered as a low-dose daily tablet, joining an emerging oral subset of GLP-1 drugs that help to regulate blood sugar, slow digestion and curb appetite. The prospectus billed the candidate drug as having the potential to be a best-in-class treatment and the second oral GLP-1 drug to land on the global market. Unlike other therapies that need to be taken on an empty stomach and separately from other medications, Eccogene’s version could be taken with food and is metabolized relatively quickly, offering a convenient route to weight loss.

Supported by AstraZeneca, the drug is undergoing global Phase Two clinical trials for treating excess weight and type 2 diabetes, as well as a Phase One bridging study in China. The trials are expected to wrap up by the fourth quarter of 2025.

The global market for GLP-1 receptor agonists has grown exponentially in recent years, driven by proven results in tackling diabetes and accelerating weight loss. The market expanded from $13.2 billion in 2020 to $72.1 billion in 2024, a compound annual growth rate of nearly 53%, according to research data cited in the prospectus. The study projected the market would reach $246.5 billion by 2029.

However, competition has intensified, with weight-loss tablets becoming the new battleground, being easier than injectables to take consistently. Novo Nordisk’s oral semaglutide was the world’s first such formulation to gain approval, initially for diabetes patients, and is being reviewed for use against obesity in several markets. Meanwhile, a rival oral drug from Eli Lilly (LLY.US), orforglipron, has completed Phase Three trials. China’s innovation pipeline is also pumping. Innovent Biologics (1801.HK) has gained Chinese marketing approval for its dual agonist mazdutide, while at least eight Chinese versions of semaglutide are awaiting approval, and 14 GLP-1 innovative drugs are undergoing Phase Three trials.

Eccogene said the proceeds from its IPO, which is sponsored by Jefferies, BofA Securities and CICC, would be spent on clinical research and trials for its core products, including therapies for weight loss, thyroid issues and liver conditions.

Eli Lilly expertise

Eccogene was co-founded by two former members of Eli Lilly’s top scientific team, Jingye Zhou and Jianfeng Xu. Zhou served as head of chemistry at the multinational’s China research center while Xu was principal scientist. Eli Lilly has played a pivotal role in the anti-obesity business, with clinical trials showing its dual agonist tirzepatide can outperform Novo Nordisk’s semaglutide.

Attracted by the founders’ credentials, investors have piled in to support Eccogene since the company was set up. A Series A funding round from 2018 to 2020 raised 100 million yuan ($14 million), delivering a post-financing valuation of 202 million yuan. When AstraZeneca became a strategic investor in December 2023, Eccogene’s valuation surged to $498 million, expanding nearly 17-fold in just three years.

As a clinical-stage company, Eccogene derives its entire revenue from the AstraZeneca collaboration, leading to a bumpy earnings performance. According to the prospectus, the company recorded revenue of $36 million in 2023 and $221 million in 2024, while logging turnover of $557,000 in the first half of this year. The corresponding bottom lines showed a net loss of $52 million, a net profit of $139 million, and a loss of $20 million. At the mid-year point in 2025 Eccogene held $56.43 million in cash and cash equivalents, an adequate financial buffer for ongoing clinical development.

The GLP-1 weight-loss sector has been popular with investors on the Hong Kong market this year. Innogen Pharma (2591.HK), which went public in August, was more than 5,300 times oversubscribed, while PegBio (2565.HK) has surged more than 240% since its May listing.

Compared with Innogen’s market capitalization of HK$16.4 billion ($2.11 billion), Eccogene’s post-financing valuation of around $498 million could have significant upside. Nonetheless, with Eccogene’s drug candidates all still in clinical trials, investors should keep an eye on the progress towards commercialization.

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