Pfizer & Blackstone Strike US$1.5bn GLP-1 Obesity Drug Deal

The burgeoning GLP-1 market continues to attract pharmaceutical companies looking to challenge established market leaders Eli Lilly and Novo.

According to J.P. Morgan Global Research, the global incretin market, which includes GLP-1s, could reach US$200bn by 2030.

The latest indication of the wider sector’s growing interest in this expanding market is a strategic funding agreement between Pfizer and Blackstone Life Sciences, under which investment firm Blackstone will provide up to US$1.5bn to support the development of Pfizer's experimental obesity treatment berobenatide.

The agreement will see funds managed by Blackstone cover development costs through to 2028. In return, Blackstone will be eligible for milestone-based payments, conditional on US regulatory approval and the achievement of specified commercial sales targets.

Dr Nicholas Galakatos, Global Head of Blackstone Life Sciences, described berobenatide as a potentially “first-in-class” monthly GLP-1 candidate in a LinkedIn post announcing the agreement.

"The BXLS team appreciates our continued work with Pfizer on mission critical programmes that can improve the standard of care across a variety of diseases for patients," he says.

In the official announcement, Nicholas adds: "We are pleased to further expand our relationship with Pfizer and support the broad and rigorous development of berobenatide as the anchor of Pfizer's cardiometabolic pipeline."

Blackstone Life Sciences oversees more than US$15bn in pharmaceutical, healthcare and life sciences assets. The firm says it had brought more than 200 medicines to market as of 30 September 2026.

Pfizer's Metsera acquisition

The agreement builds on Pfizer's efforts to establish a stronger position in the rapidly expanding obesity therapeutics market, following its US$10bn acquisition of clinical-stage biotechnology company Metsera in November 2025.

The deal, which was completed following a high-profile bidding war with Novo, brought a portfolio of experimental medicines targeting obesity and cardiometabolic diseases into Pfizer's pipeline, with berobenatide among the assets central to its ambitions in the space.

Berobenatide is an investigational GLP-1 receptor agonist peptide being developed as a potential monthly injectable treatment for chronic weight management. Pfizer is also exploring its potential application in obesity-related conditions, including knee osteoarthritis and obstructive sleep apnoea.

The company has outlined an extensive clinical development programme, planning more than 20 trials for obesity and related comorbidities during 2026. 

This includes 10 ongoing and planned Phase 3 studies of berobenatide, assessing the treatment both as a standalone therapy and in combination with other nutrient-stimulated hormone (NuSH) peptides, including amylin analogues.

Earlier Phase 2b findings presented by Pfizer in June 2026 indicated non-placebo-adjusted weight loss of almost 16% after 32 weeks in the VESPER-1 study, using a 2.4mg weekly dose. The company also reported that weight loss had not plateaued by the end of the study period.

Pfizer's Chief Financial Officer and Executive Vice President, Cecile Guegan, says the Blackstone agreement will help the company balance investment in its obesity programme with its wider research priorities.

"Our aim is to bring important new medicines to patients while taking a disciplined approach that pairs internal research investments with targeted investment from capital partners," she says.

"Today's announcement helps us advance our comprehensive obesity programme and maintain the financial capacity and flexibility to invest in our broader pipeline across all therapeutic areas."

Blackstone's burgeoning life sciences portfolio

For Blackstone, the agreement builds on its growing portfolio of partnerships with biotechnology and pharmaceutical companies developing treatments across a range of therapeutic areas.

Blackstone Life Sciences operates as a specialist investment platform, providing capital and operational expertise to support medicines and medical technologies throughout their development and commercialisation. 

Discussing Blackstone Life Sciences’ investment approach in a Q&A on the company’s website, Nicholas explains that “the simplest way to describe our approach is that we fund products, not companies. We seek to deliver attractive value at lower risk through strategies like funding the late-stage development of innovative core products from highly credible counterparties.” 

Its recent activity includes a US$400m strategic funding agreement with Teva Pharmaceutical, announced in March 2026, to support the late-stage clinical development of duvakitug, an antibody targeting TL1A for the treatment of ulcerative colitis and Crohn's disease.

The arrangement provides funding over four years, with Blackstone also eligible for regulatory and commercial milestone payments and royalties on worldwide sales.

Blackstone has also committed up to US$750m to support Moderna's influenza mRNA vaccine programme. Announced in March 2024, the collaboration is designed to help fund development and commercialisation of the investigational vaccine.

The investment firm has also backed US firm Merck & Co's development of sacituzumab tirumotecan, an investigational antibody-drug conjugate being studied for cancer treatment. A reported US$700m investment demonstrates Blackstone's appetite for financing complex, high-value clinical programmes.

Through its broader investment activities, Blackstone has additionally supported the development of a scaled specialty pharmaceutical platform involving Paratek Pharmaceuticals and Radius Health, with a reported US$1.3bn financing package supporting a portfolio that includes NUZYRA, XHANCE and TYMLOS.

Blackstone Life Sciences -key partners

Teva Pharmaceuticals

CEO: Richard Francis | HQ: Tel Aviv, Israel

Teva Pharmaceuticals is a global biopharmaceutical company specialising in generic and innovative medicines. Its portfolio spans central nervous system disorders, respiratory conditions and oncology, alongside treatments for other chronic diseases. The company is pursuing a strategic transformation to strengthen its innovative medicines pipeline while maintaining its position as a major global supplier of generic medicines. 

Moderna

CEO: Stéphane Bancel | HQ: Cambridge, Massachusetts

Moderna is a biotechnology company specialising in messenger RNA (mRNA) medicines and vaccines. Best known for developing one of the first COVID-19 vaccines, the company is expanding its technology platform across infectious diseases, oncology and rare diseases. Its research focuses on using mRNA to instruct cells to produce proteins that can prevent or treat a range of conditions.