Novo has entered into a license agreement with Hengrui Pharma, a Shanghai-based bio/pharmaceutical company, for HRS-1596, a Phase I-ready glucagon-like peptide-1 receptor (GLP-1R) and gastric inhibitory polypeptide receptor (GIPR) dual agonist, obesity drug with potential for once-weekly oral dosing, in a deal worth up to $2.6 billion ($300 million upfront and $2.3 billion in milestone payments). 

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. 

Under the agreement, Novo will obtain exclusive rights to develop, manufacture, and commercialize HRS-1596 globally, excluding mainland China, Hong Kong, Macao and Taiwan. The potential total value of the agreement is up to $2.6 billion contingent on the achievement of applicable development, regulatory and commercial milestones. This includes a $300-million upfront payment. In addition, Hengrui Pharma is eligible to receive royalties based on net sales of HRS-1596 within the licensed territory. Hengrui Pharma has received approval in China to initiate Phase I clinical trials with HRS-1596 for weight management and Type 2 diabetes. 

The license agreement is subject to clearance under the US Hart-Scott-Rodino Antitrust Improvements Act and the satisfaction of other customary closing conditions. The transaction is expected to close in the fourth quarter of 2026. 

Source: Novo