Novo Nordisk Licenses Hengrui's Experimental Oral Obesity Drug for Up to $2.6B

Novo Nordisk has secured an exclusive license to develop HRS-1596, an experimental oral drug from China’s Jiangsu Hengrui Pharmaceuticals, for obesity and type 2 diabetes. The once-weekly drug is a dual GLP-1 and GIP receptor agonist and is ready to begin Phase 1 clinical trials.

Novo Nordisk will pay Hengrui $300 million upfront. Development, regulatory and commercial milestone payments could bring the deal’s total value to $2.6 billion. Hengrui is also eligible for tiered royalties on net sales.

Novo Nordisk receives exclusive global rights to develop, manufacture and commercialize the drug, except in Greater China: mainland China, Hong Kong, Macau and Taiwan. Hengrui retains rights in those markets.