Novo Nordisk Licenses Obesity Drug from Jiangsu Hengrui for $2.6 Billion

Novo Nordisk entered an agreement to license HRS-1596, an experimental obesity and diabetes treatment, from Jiangsu Hengrui Pharmaceuticals in a deal valued at up to $2.6 billion. The agreement grants Novo Nordisk exclusive rights to develop, manufacture, and commercialize the drug globally, though these rights exclude mainland China, Hong Kong, Macao, and Taiwan.

The financial terms include a $300 million upfront payment. The remaining value of the deal depends on the achievement of development, regulatory, and commercial milestones, alongside royalties on net sales. HRS-1596 is a phase 1-ready GLP-1/GIP dual receptor agonist designed for once-weekly oral dosing to assist with glucose control and weight reduction.

Jiangsu Hengrui Pharmaceuticals has already secured approval in China to begin phase 1 trials for the treatment targeting type 2 diabetes and weight management. The transaction remains subject to antitrust clearance in the United States and is expected to close in the fourth quarter of 2026.