Novo Nordisk has agreed to pay up to $2.6 billion for global rights outside Greater China to Hengrui Pharma’s experimental oral metabolic drug, as the Danish drugmaker expands its pipeline of next-generation obesity and diabetes treatments.

 

Under the licensing agreement announced today, Novo will secure exclusive rights to develop, manufacture and commercialise HRS-1596, a phase 1-ready dual agonist targeting the GLP-1 and GIP receptors. The drug could potentially be administered once weekly in oral form, offering a less frequent dosing option than existing oral therapies.

 

The deal includes a $300 million upfront payment, with the remaining value tied to development, regulatory and commercial milestones. Hengrui Pharma will also receive royalties on net sales in Novo’s licensed territories.

 

The agreement covers the global market excluding mainland China, Hong Kong, Macao and Taiwan.

 

"Novo has pioneered the field of oral peptides and as leaders, we continuously look to advance our broad and deep oral pipeline across obesity, diabetes and other cardiometabolic diseases through our strong internal capabilities and leading external innovation," said Martin Holst Lange, executive vice president, Research & Development and chief scientific officer at Novo. 

 

"Hengrui Pharma has a proven track record of discovering and advancing innovative therapies with the patients in the center, and we are excited to add HRS-1596 to our growing pipeline and to explore its potential to raise the bar for convenience in the field."

 

HRS-1596 is designed to target several mechanisms involved in weight and blood-sugar control, including appetite suppression, insulin secretion and insulin sensitivity. Hengrui says the compound could potentially be developed for obesity, type 2 diabetes and other metabolic diseases.

 

The drug has already cleared a regulatory hurdle in China, where Hengrui Pharma has received approval to begin phase 1 clinical trials for weight management and type 2 diabetes.

 

“We are committed to continuous innovation, bringing better treatments to patients. HRS-1596 reflects this commitment in metabolic diseases, with the potential to offer the convenience of once-weekly oral administration,” said Frank Jiang, Executive Vice President and Chief Strategy Officer of Hengrui Pharma. 

 

“This collaboration brings together Hengrui’s innovation strengths and Novo’s global leadership in GLP-1 therapies and obesity care. Together, we aim to advance this innovative therapy for patients worldwide.”

 

The transaction comes as drugmakers race to develop more convenient alternatives in the fast-growing GLP-1 market, particularly treatments that could reduce the burden of frequent dosing.