Novo Nordisk licenses Hengrui's oral GLP-1/GIP agonist for $2.6bn
Novo Nordisk has struck an exclusive licence deal with China's Hengrui Pharma for HRS-1596, a once-weekly oral glucagon-like peptide-1 and gastric inhibitory polypeptide dual receptor agonist, in a transaction valued at up to $2.6 billion including milestones. The Danish company will pay $300 million upfront to secure global rights, excluding mainland China, Hong Kong, Macao and Taiwan, with Hengrui remaining eligible for royalties on net sales in the licensed territory.
The agreement is subject to clearance under the US Hart-Scott-Rodino Antitrust Improvements Act and is expected to close in the fourth quarter of 2026. Hengrui has already received Chinese regulatory approval to begin Phase 1 trials of HRS-1596 in weight management and type 2 diabetes, making the asset phase 1-ready for Novo's global programme.
The science and the strategic fit
HRS-1596 is designed to suppress appetite, stimulate insulin secretion and improve insulin sensitivity through simultaneous agonism of both the GLP-1 and GIP receptors. The once-weekly oral dosing schedule is its most commercially distinctive feature: current approved oral GLP-1 therapies, including Novo's own semaglutide tablet, require daily dosing, so a proven once-weekly oral formulation would represent a meaningful step change in convenience for patients managing obesity and type 2 diabetes.
Martin Holst Lange, executive vice president for research and development and chief scientific officer at Novo Nordisk, said the company was looking to "advance our broad and deep oral pipeline across obesity, diabetes and other cardiometabolic diseases" and described HRS-1596 as a candidate with potential "to raise the bar for convenience in the field."
Market context and competitive landscape
The deal underscores Novo Nordisk's determination to maintain leadership in the GLP-1 space as competition intensifies. Eli Lilly's tirzepatide, which also targets GIP alongside GLP-1, is approved for both obesity and type 2 diabetes and is gaining commercial ground rapidly. Several other companies, including Amgen, AstraZeneca and Zealand Pharma, are advancing oral and longer-acting injectable candidates in what has become one of the most competitive segments in modern drug development.
The strategic rationale for Novo is clear: oral delivery remains the next major frontier for GLP-1-class drugs, and weekly oral dosing could be transformative for patient adherence. Hengrui Pharma, one of China's largest innovative pharmaceutical companies with a substantial pipeline spanning oncology, metabolic disease and immunology, has emerged as a prolific licensor to Western majors, with this deal representing a significant validation of its discovery capabilities. The $300 million upfront payment, one of the larger initial cash components in recent Chinese pharma out-licensing transactions, reflects Novo's conviction that the oral formulation challenge has at least partially been solved.
However, HRS-1596 has not yet reported Phase 1 human data, and the history of GLP-1 class drug development shows that demonstrating adequate oral bioavailability at a once-weekly interval is technically demanding. Investors and analysts will watch early clinical readouts closely for pharmacokinetic and tolerability data before assigning significant probability to the upper-tier milestone payments that make up the bulk of the headline figure.