Beijing:Chinese drugmaker Hengrui Pharma has announced an agreement to license the global rights of its experimental weight-loss drug, HRS-1596, to Denmark's Novo Nordisk. The deal is potentially valued at up to $2.6 billion.

According to Anadolu Agency, the drug HRS-1596 is a Phase I-ready GLP-1/GIP dual receptor agonist intended for once-weekly oral dosing. Novo Nordisk will gain exclusive rights to develop, manufacture, and commercialize the drug worldwide, with the exception of mainland China, Hong Kong, Macao, and Taiwan.

Hengrui Pharma will receive an upfront payment of $300 million and may earn additional payments tied to development, regulatory, and commercial milestones, potentially increasing the deal's total value to $2.6 billion. Additionally, Hengrui is eligible for royalties based on net sales.

The drug HRS-1596 aims to aid in weight reduction and enhance blood sugar control through mechanisms such as appetite suppression, insulin secretion stimulation, and improved insulin sensitivity. It holds potential applications in treating obesity, type 2 diabetes, and other metabolic diseases.

Authorities in China have granted Hengrui approval to commence Phase I clinical trials of HRS-1596 for weight management and type 2 diabetes. Meanwhile, Novo Nordisk, known for its obesity drug Wegovy and diabetes treatment Ozempic, continues to expand its oral treatment options for obesity and cardiometabolic conditions.

The agreement with Hengrui is subject to US antitrust clearance and other standard conditions, with the deal expected to finalize in the fourth quarter of 2026.