Novo Nordisk buys rights to new obesity pill in deal up to $2.6 bln

Danish pharmaceutical company Novo Nordisk has agreed with Chinese Jiangsu Hengrui Pharmaceuticals to license the experimental drug HRS-1596 for obesity treatment. The total potential deal value could reach $2.6 bln.

As reported by The Wall Street Journal, Novo Nordisk will pay the Chinese company $300 million upfront. The rest of the amount will depend on achieving certain development milestones, regulatory approval and commercialization of the drug.

Under the terms of the agreement, Novo will receive exclusive rights to develop, manufacture and sell HRS-1596 worldwide, except mainland China, Hong Kong, Macau and Taiwan. Jiangsu Hengrui will also be entitled to royalties on future sales of the drug in the licensed markets.

HRS-1596 is at an early stage of development. In China, the drug has already received approval to conduct phase 1 clinical trials. Its distinctive feature is a once-weekly pill format, which could potentially make therapy more convenient compared to drugs that require more frequent dosing or injections.

The deal expands Novo Nordisk's portfolio in the obesity drug market, where the company already sells Wegovy and Ozempic. At the same time, Novo is actively investing in next-generation therapies and aims to significantly increase the number of drugs capable of becoming major commercial products by the end of the decade.

At Capital Markets Day 2026, the company stated that it plans to have at least five phase 3 programs in obesity and diabetes by 2030, as well as expand the oral drugs line.

The deal with Hengrui also continues the trend in which large Western pharmaceutical companies are increasingly buying rights to promising developments from Chinese biotech companies. The transaction is expected to close in the fourth quarter of 2026.

Based on materials from: The Wall Street Journal, Novo Nordisk