China's Hengrui licenses weight-loss drug to Denmark's Novo Nordisk in deal worth up to $2.6B

Chinese drugmaker Hengrui Pharma said Tuesday it has agreed to license global rights to an experimental weight-loss drug to Denmark's Novo Nordisk in a deal potentially worth up to $2.6 billion.

The drug, HRS-1596, is a Phase I-ready GLP-1/GIP dual receptor agonist designed for once-weekly oral dosing, Hengrui said in a statement.

Under the agreement, Novo will receive exclusive rights to develop, manufacture and commercialize the drug globally, excluding mainland China, Hong Kong, Macao and Taiwan.

Hengrui will receive $300 million upfront and could receive additional development, regulatory and commercial milestone payments, bringing the potential deal value to $2.6 billion. It is also eligible for royalties on net sales.

HRS-1596 is designed to reduce weight and improve blood sugar control through mechanisms including appetite suppression, stimulation of insulin secretion and improved insulin sensitivity.

Hengrui said the drug has potential applications in obesity, type 2 diabetes and other metabolic diseases.

Chinese authorities have approved Hengrui to begin Phase I clinical trials of HRS-1596 for weight management and type 2 diabetes.

Novo, maker of obesity drug Wegovy and diabetes treatment Ozempic, has been expanding its pipeline of oral treatments for obesity and other cardiometabolic diseases. Its Wegovy pill was approved by the US Food and Drug Administration for weight management in 2025.

The Hengrui deal remains subject to US antitrust clearance and other customary conditions and is expected to close in the fourth quarter of 2026.