Novo licenses early-stage weekly obesity pill for $300 million upfront

Novo Nordisk ($NVO) has agreed to license Hengrui Pharma’s HRS-1596, an experimental oral medicine targeting both GLP-1 and GIP receptors. The agreement includes $300 million upfront within a potential $2.6 billion total, with the balance dependent on development, regulatory and commercial milestones. Hengrui would also receive sales royalties. Novo’s exclusive territory excludes mainland China, Hong Kong, Macao and Taiwan.

The candidate could expand Novo’s obesity and diabetes pipeline with a once-weekly pill, potentially reducing dosing frequency. However, it is only ready for Phase 1 testing: Chinese permission to start trials is not marketing approval, and clinical benefits remain unproven. The licensing transaction itself also requires U.S. antitrust clearance and other closing conditions, with completion anticipated in the fourth quarter.

Sources:

• Novo Nordisk release via GlobeNewswire