Novo licenses Hengrui obesity pill in deal worth up to $2.6B

Novo Nordisk has agreed to license international development and commercialization rights to Hengrui Pharmaceuticals’ experimental obesity pill HRS1596 in a deal that could be worth up to $2.6 billion if specified milestones are met. Novo said it will pay $300 million upfront; the remaining potential payments depend on development and commercial milestones. The agreement covers rights outside mainland China, Hong Kong, Macau and Taiwan. Hengrui retains control in those territories. The companies’ reported terms also include sales-based royalties, though the total potential value is conditional and is not a guaranteed payment amount. HRS1596 is an early-stage dual GLP-1/GIP receptor agonist. Chinese regulators have cleared it to begin Phase 1 studies for obesity or weight loss and type 2 diabetes. The reports provide no human trial results establishing the drug’s safety or effectiveness. Novo is developing the candidate as a pill that could be taken once a week, according to the company. That schedule would differ from the daily Wegovy tablet described in the reports, but the candidate remains at an early stage and its clinical prospects are not yet known.