Novo to pay up to $2.6 billion to China's Hengrui for weight-loss pill rights
NVO•Novo Nordisk will pay Jiangsu Hengrui Pharmaceuticals $300 million upfront and up to $2.3 billion in milestone payments for rights to experimental weight-loss pill HRS-1596 outside Greater China.
1. Deal terms
The deal gives Novo development, manufacturing and commercialization rights to HRS-1596 outside Taiwan, Macao, Hong Kong and mainland China. Hengrui disclosed the payment terms in a Tuesday filing.
2. Pill development
HRS-1596 is approved in China to begin Phase I clinical trials for weight management and type 2 diabetes. Novo said the candidate may be developed as an oral drug taken once a week and said it plans global trials, without providing a timeline.
3. Market context
The deal is Novo’s second GLP-1 treatment deal with a Chinese partner. Nearly 250 Chinese GLP-1 candidates are under development, data provider Pharmcube says. A Novo spokesperson said the pill could reduce dosing frequency and improve convenience compared with current offerings.
