Can Novo's Licensing Strategy Build Its Next Wave of Oral Medicines?

Novo NVO is expanding its external innovation strategy with the latest license agreement with Hengrui Pharma for HRS-1596, a phase I-ready GLP-1/GIP dual receptor agonist with potential for once-weekly oral dosing. Under the deal, Novo gains exclusive rights to develop, manufacture and commercialize the candidate globally outside mainland China, Hong Kong, Macao and Taiwan. The agreement has a total potential value of up to $2.6 billion, including a $300 million upfront payment, plus potential sales royalties. Hengrui has received approval in China to begin phase I studies of HRS-1596 for weight management and type II diabetes (T2D).