By Megan Cheah

Shares of CSPC Pharmaceutical Group fell sharply after the Chinese company inked a multibillion-dollar deal with pharmaceutical giant AstraZeneca for its long-acting obesity drug.

The Hong Kong-listed stock dropped as much as 13% before closing 10% lower at 9.60 Hong Kong dollars, equivalent to US$1.23. The decline was its biggest daily percentage loss in nearly a year.

CSPC said earlier Friday that it entered an obesity drug agreement with AstraZeneca that would give the U.K.-based pharmaceutical company rights outside China to its clinical-ready long-acting obesity asset and three other preclinical assets.

The Chinese company will receive US$1.2 billion upfront and be eligible for up to US$17.3 billion in development and sales milestone payments.

Analysts at Macquarie Capital viewed Friday's drop as profit-taking after what they said was CSPC's largest outlicensing deal.

The deal cements CSPC's status as one of China's most innovative biopharmaceutical companies, alongside peer Hengrui Pharmaceuticals, at a time when large Chinese pharmaceutical companies are pivoting toward innovation, the analysts said.

The new agreement also builds on a previous deal with AstraZeneca, which granted the British company global rights to a preclinical inhibitor for a US$100 million upfront payment in 2024, the analysts said.

CSPC's research and development efforts are "clearly bearing fruit," they said.

Friday's share-price decline came after the stock gained 26% this year and could be an entry opportunity for investors, Macquarie Capital said, reiterating its outperform rating and HK$12.40 target price.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

January 30, 2026 04:39 ET (09:39 GMT)

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