New Obesity Pill Deal
Novo Nordisk licenses experimental obesity pill from Chinese firm in $2.6 billion deal.
Anonymous
Novo Nordisk has agreed to pay China’s Jiangsu Hengrui Pharmaceuticals $300 million upfront to license HRS-1596, an experimental GLP-1/GIP drug being developed for obesity, Type 2 diabetes and other metabolic diseases. The deal could reach $2.6 billion through development, regulatory and commercial milestones, with Hengrui also eligible for sales-based royalties. Novo receives exclusive rights to develop, manufacture and commercialize the drug outside mainland China, Hong Kong, Macau and Taiwan, while Hengrui retains those markets. HRS-1596 is approved to begin Phase 1 trials in China, and Novo plans global trials; the drug may offer once-weekly oral dosing, potentially making treatment more convenient than existing options. The licensing deal adds an early-stage candidate to Novo’s pipeline as drugmakers pursue weight-loss pills and seek growth beyond established blockbuster treatments.
Key Points
1
Analysts expect the weight-loss drug market to generate about $100 billion in annual sales within the next decade. Drugmakers see pills as a way to reach patients reluctant to use injections.
2
Novo’s oral Wegovy and Eli Lilly’s oral Foundayo are existing once-daily GLP-1 pills, giving context to HRS-1596’s potential once-weekly schedule.
3
The transaction is expected to close in the fourth quarter of 2026. It follows Novo’s earlier agreement to pay up to $1.3 billion for Nanexa’s drug-delivery technology, which could reduce injection frequency for its obesity and diabetes drugs.
4
Novo’s deal comes as it seeks to rebuild investor confidence in its prospects beyond Ozempic and Wegovy.
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