Novo Nordisk strikes second licensing deal since frosty capital-markets day

By Steve Goldstein

Danish drugmaker to pay up to $2.6 billion for Chinese obesity pill candidate

Novo Nordisk struck a licensing deal.

Novo Nordisk on Tuesday struck its second licensing deal since receiving a poor reception from investors after presenting its long-term strategy.

Novo Nordisk (NVO) (DK:NOVO.B), the Danish drugmaker behind the wildly popular Ozempic and Wegovy weight-loss medications, said it's paying up to $2.6 billion to Hengrui Pharma (HK:1276) (CN:600276)to license HRS-1596, a drug that's ready for preliminary trials.

Novo shares slipped 1% in premarket trade. Hengrui Pharma stock rose 2% in Hong Kong.

The drug is described as glucagon-like peptide-1 receptor and gastric inhibitory polypeptide receptor dual agonist, with potential for once-weekly oral dosing.

The licensed drug works much like the Mounjaro medication from rival Eli Lilly's does. The rights that Novo obtained exclude Hengrui's main markets of mainland China, Hong Kong, Macao and Taiwan

HRS-1596 is designed to reduce weight and improve glycemic control through multiple mechanisms, including appetite suppression, stimulation of insulin secretion, and improved insulin sensitivity, supporting its potential use in obesity, type 2 diabetes, and other metabolic diseases, Novo Nordisk said.

China has already cleared Hengrui to conduct Phase I trials.

Last week, Novo struck a deal with Sweden's Nanexa (SE:NANEXA) for a drug-delivery technology platform worth over $1 billion.

Analysts at Barclays say investors it's talked to are confused about the direction of the company and how it can navigate when key patents expire in 2030 and 2032.

"Investors struggled to identify late enough stage peptide-based obesity assets [Novo] could acquire that would launch in time to offset the sema patent expiry," the Barclays team said in a note that published on Tuesday.

-Steve Goldstein

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09-29-26 0546ET