Novo Nordisk to license GLP-1 drug from China's Hengrui in $2.6 billion deal
NVO•Novo Nordisk will pay Jiangsu Hengrui Pharmaceuticals $300 million upfront and up to $2.3 billion in milestone payments for rights to its experimental anti-obesity pill HRS-1596 outside China, Hong Kong, Macao and Taiwan.
1. Deal terms
Novo Nordisk will gain development, manufacturing and commercialisation rights to HRS-1596 outside mainland China, Hong Kong, Macao and Taiwan. Hengrui is eligible for up to $2.3 billion in development, regulatory and commercial milestone payments, in addition to a $300 million upfront payment.
2. Drug development
HRS-1596 is approved in China to initiate Phase I clinical trials for weight management and type 2 diabetes. Novo said the drug could be developed as an oral treatment taken once a week, which it said would “substantially reduce dosing frequency and improve convenience compared with current offerings.” Novo plans global trials but did not provide timelines.
3. Market context
The deal is Novo's second GLP-1 treatment partnership with a Chinese company. Analysts expect the global weight-loss market to generate about $100 billion in annual sales in the next decade, and nearly 250 Chinese GLP-1 candidates are under development.
