Novo Nordisk has signed a licensing agreement with China’s Jiangsu Hengrui Pharmaceuticals for HRS-1596, an experimental once-weekly oral weight-loss pill. The deal is valued at up to $2.6 billion, including a $300 million upfront payment and milestone payments, plus royalties.
Novo Nordisk receives exclusive global rights to develop, manufacture and commercialize the drug, excluding mainland China, Hong Kong, Macao and Taiwan. The agreement aims to strengthen Novo Nordisk’s pipeline and its position against rivals such as Eli Lilly, as key patents are set to expire in the next decade.
HRS-1596 is a dual GLP-1/GIP receptor agonist, a mechanism similar to Eli Lilly’s Mounjaro, and is ready to enter Phase 1 trials in China. After the announcement, Novo Nordisk shares dipped slightly in premarket trading, while Hengrui shares rose in Hong Kong.