Hengrui Pharma has licensed its self-developed oral GLP-1/GIP dual receptor agonist HRS-1596 to global weight-loss drug leader Novo Nordisk, with a potential total deal value of up to $2.6 billion, marking another milestone in Chinese innovative pharmaceutical companies' overseas expansion in the global weight-loss sector.

On September 29, Hengrui Pharma (ASX: 01276) announced that the company signed a licensing agreement for the HRS-1596 project with Novo Nordisk. Under the agreement, Novo Nordisk will obtain exclusive rights to develop, manufacture, and commercialize HRS-1596 globally outside of Greater China. The transaction includes an upfront payment of $300 million, as well as up to $2.3 billion in development, regulatory, and commercialization milestone payments, bringing the potential total deal value to as much as $2.6 billion. In addition, Hengrui will receive sales royalties based on net sales of HRS-1596 in the licensed territories.

Following the announcement, Hengrui Pharma (ASX: 01276) shares surged sharply, with gains at one point exceeding 3%.

HRS-1596: Once-Weekly Oral Dosing, Still in Early Clinical Stage

HRS-1596 is a GLP-1/GIP dual receptor agonist independently developed by Hengrui, designed to achieve weight loss and blood sugar control through multiple mechanisms including appetite suppression, promotion of insulin secretion, and improvement of insulin sensitivity. It has potential applications for obesity, type 2 diabetes, and other metabolic diseases.

The product's core differentiating advantage lies in its route of administration — HRS-1596 is expected to achieve once-weekly oral dosing, which compared to existing injectable formulations can significantly reduce dosing frequency and improve patient compliance. Currently, Hengrui has received approval in China to conduct Phase I clinical trials of HRS-1596 for weight management and type 2 diabetes, and the product as a whole remains in the early development stage.

Hengrui noted in its announcement that the drug development process from research through clinical trial approval to production involves long timelines and multiple stages, and whether HRS-1596 can ultimately receive overseas marketing approval remains uncertain. The milestone payments stipulated in the agreement are also subject to meeting corresponding conditions, and the final amounts remain variable.

$300 Million Upfront Payment Secured, Closing Expected in Q4 2026

From a financial terms perspective, the $300 million upfront payment represents the most certain revenue in this transaction, while the remaining up to $2.3 billion in milestone payments is tied to subsequent development, regulatory, and commercialization progress. The sales royalty component will be calculated separately based on actual net sales of HRS-1596 in the licensed territories.

The agreement is governed by the laws of the State of New York and requires approval from relevant regulatory authorities under the U.S. Hart-Scott-Rodino Antitrust Improvements Act, as well as satisfaction of other customary closing conditions. Hengrui expects the transaction to close in the fourth quarter of 2026.

Notably, Hengrui has retained all rights to HRS-1596 in Greater China (mainland China, Hong Kong, Macau, and Taiwan), with the licensing scope covering only global markets outside of Greater China.

Novo Nordisk has been deeply engaged in the GLP-1 field for many years, and its acquisition of Hengrui's oral GLP-1/GIP asset is widely viewed as an important move to continuously strengthen its oral weight-loss drug pipeline. For Hengrui, leveraging Novo Nordisk's global commercialization network can effectively accelerate the overseas advancement of HRS-1596 and achieve rapid translation of research and development achievements.

Hengrui stated in its announcement that the company adheres to prioritizing both independent research and open collaboration. This partnership aims to leverage an internationally leading partner's coverage of overseas markets, accelerate integration into the global pharmaceutical innovation network, and maximize product value.