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(Sharecast News) - Novo Nordisk said on Tuesday that it has agreed to buy the rights to a Hengrui Pharma weight-loss drug for up to $2.6bn.
The license agreement with China's Hengrui is for HRS-1596, a phase 1-ready glucagon-like peptide-1 receptor (GLP-1R) and gastric inhibitory polypeptide receptor (GIPR) dual agonist, with potential for once-weekly oral dosing.
Denmark's Novo will obtain exclusive rights to develop, manufacture and commercialise the drug globally, excluding mainland China, Hong Kong, Macao and Taiwan.
Hengrui Pharma has received approval in China to initiate phase 1 clinical trials with HRS-1596 for weight management and type 2 diabetes.
Martin Holst Lange, executive vice president, Research & Development and chief scientific officer at Novo, said: "Novo has pioneered the field of oral peptides and as leaders, we continuously look to advance our broad and deep oral pipeline across obesity, diabetes and other cardiometabolic diseases through our strong internal capabilities and leading external innovation.
"Hengrui Pharma has a proven track record of discovering and advancing innovative therapies with the patients in the centre, and we are excited to add HRS-1596 to our growing pipeline and to explore its potential to raise the bar for convenience in the field."
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.
Novo said it has potential to be developed for once-weekly oral administration, which would substantially reduce dosing frequency and improve convenience compared with current offerings.
A 1255 BST, Novo shares were up 0.4% at DKK253.25.
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