# Menarini to Pay $72M Upfront, Up to $771M Total, for European Rights to Gan & Lee's GLP-1 Drug

Italian pharmaceutical company Menarini Group has agreed to pay Chinese insulin maker Gan & Lee Pharmaceuticals €62 million ($72 million) up front as part of a collaboration deal that could be worth up to $771 million. The agreement covers the registration and commercialization of Gan & Lee's GLP-1 receptor agonist bofanglutide in the European market.

The upfront payment secures Menarini's rights to develop and sell the drug in Europe, with Gan & Lee potentially receiving additional milestone payments and royalties tied to regulatory and commercial targets. The deal marks Menarini's entry into the GLP-1 therapy space, a rapidly growing class of drugs used to treat type 2 diabetes and obesity.

Bofanglutide is a long-acting GLP-1 analogue originally developed by Gan & Lee, a Beijing-based biopharmaceutical company focused on diabetes treatments. Menarini, headquartered in Florence, will lead the European regulatory filings and handle local distribution.

**Why it matters**

GLP-1 receptor agonists have become a major focus in the biotech and pharmaceutical industries because of their effectiveness in managing blood sugar levels and promoting weight loss. The global market for these drugs is projected to exceed $100 billion within the next decade. This cross-continental licensing deal reflects the growing trend of Asian drug developers partnering with European firms to bring metabolic therapies to Western markets, and it highlights the ongoing expansion of the GLP-1 class beyond the dominant players Novo Nordisk and Eli Lilly.

Source: [original report](https://www.fiercebiotech.com/biotech/menarini-group-signs-771m-deal-take-gan-lee-glp-1-european-market)