Novo Nordisk Pays $300 Million Upfront for Weekly Oral GLP-1 Candidate From China's Hengrui

Novo Nordisk will pay Hengrui $300 million upfront for rights to experimental once-weekly oral GLP-1/GIP pill HRS-1596, in a deal worth up to $2.6 billion.

Novo Nordisk has moved to strengthen its metabolic disease portfolio, striking a worldwide licensing agreement with China's Jiangsu Hengrui Pharmaceuticals for an experimental drug candidate known as HRS-1596. The deal carries a potential total value of up to $2.6 billion, though only a fraction of that is guaranteed.

Under the terms, the Danish drugmaker will hand over $300 million as an immediate upfront payment. A further $2.3 billion could follow in milestone payments tied to clinical development progress, regulatory approvals and global commercialization. Hengrui would also receive royalties on future sales.

In return, Novo Nordisk gains exclusive rights to develop, manufacture and market the compound outside mainland China, Hong Kong, Macau and Taiwan. The transaction is subject to antitrust clearance in the United States and is expected to close in the fourth quarter of 2026.

A Once-Weekly Pill in a Market Built on Injections

HRS-1596 is an orally administered dual GLP-1/GIP agonist designed for once-weekly dosing. Existing approved treatments in this space rely largely on regular subcutaneous injections or daily oral tablets. The candidate is being developed for weight management and type 2 diabetes, with the potential to address other metabolic disorders as well.

Early-stage Phase I trials for the two lead indications have already been cleared in China, and international study programs are in the works. Management has not yet provided a detailed timeline. Analyst Per Hansen noted that even with positive trial results, bringing the product to market could take seven to nine years.

The licensing move comes amid fierce competition in the global obesity treatment arena. Rival Eli Lilly recently reported that its own obesity pill, Foundayo, delivered greater weight loss and better blood sugar control than Novo Nordisk's oral Wegovy in an indirect comparison at the highest dose.

Market Reaction Muted as Shares Extend Annual Decline

Investors greeted the announcement with little enthusiasm. Novo Nordisk shares were trading at EUR 33.65, down 1.2%, in one reading of the session, while a later quote put the stock at EUR 33.78, a decline of 0.8%. Year-to-date, the shares have lost 23%.

Hengrui's Hong Kong-listed stock, by contrast, climbed following confirmation of the deal. For the Danish side, investors appear to be weighing the opportunity against the lengthy development cycles that characterize the crowded obesity market.

Pipeline expansion remains a cornerstone of Novo Nordisk's long-term strategy. Management is targeting more than $23 billion in revenue from new pipeline products by 2035. By adding the Hengrui molecule, the company secures an additional option in the fast-growing market for oral metabolic medicines — a segment where patient-friendly formats are expected to play an increasingly central role alongside injectable therapies.