Novo Nordisk licenses experimental GLP-1 obesity pill from Hengrui for up to $2.6 billion

Novo Nordisk has agreed to license an experimental GLP-1 weight-loss pill, HRS-1596, from China's Jiangsu Hengrui Pharmaceuticals in a deal valued at up to $2.6 billion. Novo Nordisk will pay $300 million upfront for rights outside of mainland China, Hong Kong, Macao, and Taiwan. The once-weekly oral drug, which is ready for Phase-I trials, represents a strategic push into a booming weight-loss market projected to reach $100 billion, as Novo Nordisk faces a 70% share drop amid fierce competition from Eli Lilly.

Terms of the licensing agreement

• ▪Jiangsu Hengrui Pharmaceuticals is eligible for up to $2.3 billion in milestone payments, bringing the total potential value of the licensing deal for HRS-1596 with Novo Nordisk to $2.6 billion
• ▪Novo Nordisk agreed to pay Jiangsu Hengrui Pharmaceuticals $300 million upfront to license an experimental GLP-1 weight-loss pill, according to announcements on September 29, 2026
• ▪Hengrui said Novo Nordisk will acquire the development, manufacturing, and commercialization rights for the experimental drug HRS-1596 outside of mainland China, Taiwan, Macao, and Hong Kong

Development of the experimental drug HRS-1596

• ▪A spokesperson for Novo Nordisk stated that the company plans to conduct global trials for the HRS-1596 asset, but declined to provide specific timelines
• ▪The licensed experimental drug, HRS-1596, is ready to enter early clinical tests and is approved in China to initiate Phase-I clinical trials for weight management and type 2 diabetes
• ▪Novo Nordisk stated that HRS-1596 has potential for development as an oral drug administered once a week, reducing dosing frequency compared to current daily offerings such as Wegovy and Foundayo

Market for oral weight-loss treatments

• ▪Drugmakers including Novo Nordisk and Eli Lilly believe oral weight-loss pills could attract patients who are reluctant to use injectable treatments
• ▪Existing GLP-1 class products in the weight-loss and diabetes market include Novo Nordisk's once-daily pill Wegovy and Eli Lilly's once-daily pill Foundayo
• ▪Financial analysts expect the global weight loss market to generate annual sales of approximately $100 billion within the next decade

Novo Nordisk share performance

• ▪Novo Nordisk shares have fallen more than 70% from their record highs in the face of stiff competition from rival drugmaker Eli Lilly
• ▪Novo Nordisk shares fell by 0.30% on September 29, 2026

Debatable claims

• ▪Oral weight-loss pills will replace injectables as the primary treatment for obesity
• ▪Novo Nordisk's $2.6 billion licensing deal is a justified risk to counter Eli Lilly