Novo Nordisk licenses Hengrui’s HRS-1596 in China deal to expand oral obesity pipeline

CHINA—Novo Nordisk has signed a licensing agreement with Hengrui Pharma for an experimental oral metabolic drug, expanding its obesity pipeline as competition with Eli Lilly intensifies.

Under the agreement, Novo will pay Hengrui US$300 million upfront and could pay up to US$2.3 billion in development, regulatory, and commercial milestones.

The Danish pharmaceutical company will receive exclusive rights to develop, manufacture, and commercialise HRS-1596 outside mainland China, Hong Kong, Macau and Taiwan.

Hengrui will also receive royalties based on net sales in the licensed territories.

The transaction is expected to close in the fourth quarter of 2026, subject to regulatory clearance and other conditions.

Weekly oral dosing

HRS-1596 is a phase I-ready dual agonist targeting the glucagon-like peptide-1 (GLP-1) and gastric inhibitory polypeptide (GIP) receptors.

Hengrui has received approval in China to begin phase I trials in weight management and type 2 diabetes.

The candidate is designed for potential once-weekly oral administration, which could reduce dosing frequency compared with currently available oral GLP-1 treatments.

Novo said the compound is being added to its pipeline for obesity, diabetes and other cardiometabolic diseases, with the potential to improve convenience for patients.

The deal comes as drug developers increasingly explore oral alternatives to injectable metabolic treatments.

Novo already markets oral Wegovy (semaglutide), while Eli Lilly sells Foundayo (orforglipron), an oral GLP-1 medicine.

Novo reported that Wegovy pill sales reached DKK3.14 billion (US$460 million) in the second quarter of 2026, while weekly US prescriptions exceeded 265,000 by mid-July.

Competition in metabolic medicines

The agreement adds another asset to Novo’s efforts to compete in a rapidly expanding obesity and diabetes market.

Eli Lilly reported US$15.7 billion in second-quarter 2026 revenue from its key products, led by Mounjaro and Zepbound, although the figure covers several products rather than the two medicines alone.

For Novo, HRS-1596 also provides access to a China-originated candidate at an early stage of development.

Its clinical performance, safety profile, dosing feasibility and regulatory pathway will determine whether the programme advances beyond phase I.

China’s licensing market

The agreement also reflects the growing role of Chinese drug developers in global pharmaceutical dealmaking.

GlobalData reported that China’s out-licensing activity has expanded beyond oncology into areas including immunology and metabolic diseases.

Its data indicate that China’s out-licensing deals reached US$115 billion in 2025, while almost half of US in-licensing deals reportedly originated from China.

Hengrui has previously attracted major international partnerships, including agreements involving oncology and other therapeutic areas.

The Novo deal adds metabolic disease to that licensing activity.

However, cross-border transactions involving Chinese biotechnology assets can face additional regulatory and geopolitical scrutiny.

GlobalData has highlighted the potential impact of US measures, including the proposed Biotech Investment National Security Act, on future transactions involving Chinese-developed medicines.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on LinkedIn for updates.