- The Chinese drugmaker will receive $300 million upfront, with additional payments tied to development, regulatory and commercial milestones
- The deal gives Novo Nordisk global rights to HRS-1596, a once-weekly oral GLP-1/GIP drug candidate
Hengrui Pharma (恒瑞医药), one of China’s largest pharmaceutical companies, has licensed global rights to its experimental obesity and diabetes drug HRS-1596 to Novo Nordisk in a deal potentially worth up to $2.6 billion.
This transaction comes as the Danish drugmaker expands its pipeline of next-generation weight-loss treatments.
Under the exclusive licensing agreement announced September 29, Novo Nordisk will gain rights to develop, manufacture and commercialize HRS-1596 worldwide, excluding mainland China, Hong Kong, Macau and Taiwan.
Headquartered in Lianyungang, Jiangsu Province, Hengrui will receive a $300 million upfront payment, followed by development, regulatory and commercial milestones, as well as royalties on net sales in the licensed territories.
Developed for obesity and other diseases
HRS-1596 is a GLP-1/GIP dual-receptor agonist designed to suppress appetite, stimulate insulin secretion and improve insulin sensitivity. The drug is being developed for obesity, type 2 diabetes and other metabolic diseases.
Its main differentiator is its once-weekly oral dosing, which Hengrui says could reduce dosing frequency and improve patient adherence.
The drug has received Chinese regulatory approval to begin Phase 1 trials for weight management and type 2 diabetes.
Frank Jiang (江宁军), Hengrui’s executive vice president and chief strategy officer, said the partnership combines Hengrui’s drug-development capabilities with Novo Nordisk’s global expertise in GLP-1 therapies and obesity care.
Martin Holst Lange, Novo Nordisk’s executive vice president and chief scientific officer, said HRS-1596 could “raise the bar for convenience” in the field.
Pending regulatory clearance
The transaction remains subject to regulatory clearance under the US Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Closing is expected in the fourth quarter of 2026.
Hengrui shares rose following the announcement, with the Shanghai-listed stock closing 2.59% higher at 45.62 yuan ($6.8) on September 29, giving the firm a market cap of 302.8 billion yuan.
Its Hong Kong-listed shares rose 1.88% to HK$45.60 ($5.8), valuing the company at HK$302.7 billion.
Header image credit: Pixels
