Novo has inked a licensing agreement with Shanghai-based biopharma, Hengrui Pharma for an oral metabolic disease candidate as the pharma titan looks to get a leg up on staunch rival, Eli Lilly, in the cardiometabolic market.
Through this deal, which will see Novo hand over $300m upfront, while committing to pay up to $2.3bn in development, regulatory and commercial milestones, the Danish pharma giant will secure the exclusive rights to Hengrui’s dual glucagon-like peptide 1 (GLP-1) and gastric inhibitory polypeptide receptor (GIP) agonist, HRS-1596, outside of China, Hong Kong, Macau and Taiwan. The Chinese biopharma will also be eligible to receive an unspecified amount of royalties linked to HRS-1596’s sales – provided the drug secures approval.
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Hengrui has designed Phase I-ready HRS01596 as a potentially more convenient, once-weekly alternative to currently approved oral options, such as Lilly’s Foundayo (orforglipron) or Novo’s oral Wegovy (semaglutide), which require once-daily dosing. Through its dual GLP-1/GIP-targeting activity, Novo is also hoping that HRS-1596 will provide stronger weight loss and glycaemic control benefits over approved oral therapies within conditions like obesity, type 2 diabetes and other metabolic diseases.
Novo takes HRS-1596 under its wing as the obesity treatment paradigm evolves towards more patient-centric and less frequent dosing schedules. Healthcare professionals and patients alike are also growing increasingly interested in prioritising the preservation of lean muscle mass and improving cardiovascular outcomes when on treatment, rather than just focusing on weight loss alone.
This deal also comes amid the backdrop of Novo’s ongoing battle for obesity and type 2 diabetes market share with Eli Lilly. While the Danish pharma secured the first-to-market advantage in the obesity pill segment with oral Wegovy, Lilly is currently in pole position within the injectables space, as its tirzepatide franchise – combining Zepbound and Mounjaro – pulled in just under $15bn in sales during Q2 alone, compared with the semaglutide franchise’s $7.8bn. However, Novo’s CEO, Mike Doustdar previously touted the early success of oral Wegovy on the market, noting it was off to a “record-breaking start” in May this year.
The China licensing deal craze continues
Novo’s deal with Hengrui comes as the Shanghai-based biotech becomes increasingly sought after by big pharma as a source for novel pipeline assets, with key players like Bristol Myers Squibb (BMS), GSK and MSD all betting billions on assets from the company across the realm of oncology, haematology, immunology, cardiovascular, respiratory and inflammatory indications – to name a few.
The uptick in deals with Hengrui follows the wider trend towards licensing innovative medicines from China, with a recent intelligence briefing from GlobalData, parent company of Pharmaceutical Technology, noting that the country has “solidified its potential as the world’s second-largest developer of innovative drugs, with faster and cheaper clinical trials.”
As China becomes one of the go-to locations for pipeline assets, deals are also ballooning in value, with the value of China’s out-licensing deals in 2025 reaching $115bn, with almost 50% of US in-licensing stemming from China, as per GlobalData’s Pharmaceutical Intelligence Center.
Experts recently told Clinical Trials Arena, sister publication to Pharmaceutical Technology, that China’s clinical trials sector is also becoming a ‘centre of gravity’ across the globe, as Phase I trials take around seven months versus 17 months in the US, while costing 30-50% less.
However, US policies such as the Biotech Investment National Security Act (BINSA) could enhance the complexity of deals between China and the West in time.
