Danish drugmaker Novo Nordisk on Tuesday announced an exclusive licensing deal with China's Hengrui Pharma worth up to 2.6 billion dollars for an experimental once-weekly obesity and type 2 diabetes pill.

The deal covers HRS-1596, a drug candidate that targets two gut hormone receptors, glucagon-like peptide-1 (GLP-1R) and gastric inhibitory polypeptide (GIPR). Under the agreement, Novo gets exclusive rights to develop, manufacture and commercialise HRS-1596 across the world, except mainland China, Hong Kong, Macao and Taiwan. Those markets remain with Hengrui.

Of the total value, 300 million dollars will be paid upfront by Novo Nordisk. The remainder depends on the drug reaching development, regulatory and commercial milestones, so the full amount will be paid only if the drug succeeds. Hengrui is also eligible for royalties on net sales of HRS-1596 in Novo's licensed territory.

Early-stage drug

HRS-1596 has yet to be tested in humans. The candidate is described as "phase 1-ready", meaning it is at the earliest stage of clinical testing. Hengrui has received approval in China to begin phase 1 trials for weight management and type 2 diabetes.

The drug is designed to help reduce weight and improve blood sugar control by suppressing appetite, stimulating insulin secretion and improving insulin sensitivity.

Its main promise is convenience a pill taken once a week would substantially cut dosing frequency compared with current treatments, the companies said. Whether it can actually be developed as a weekly oral therapy is yet to be seen, as the companies say only that it has "potential" for that.

The deal is subject to clearance under the US Hart-Scott-Rodino Antitrust Improvements Act, along with other customary closing conditions. The transaction is expected to close in the fourth quarter of 2026.

Martin Holst Lange, Novo's head of research and development, said the company has pioneered oral peptides and wants to build its oral pipeline across obesity, diabetes and other cardiometabolic diseases through both internal work and external partnerships. He said the drug could "raise the bar for convenience."

Frank Jiang, Executive Vice President and Chief Strategy Officer at Hengrui, said the partnership combines his company's innovation strengths with Novo's global leadership in GLP-1 therapies and obesity care.



Disclaimer: This content including advice provides generic information only. It is in no way a substitute for a qualified medical opinion. Always consult a specialist or your own doctor for more information. NDTV does not claim responsibility for this information.