Novo has entered into a licensing agreement with Shanghai-based Hengrui Pharma for HRS-1596, a drug candidate with potential for once-weekly oral dosing for obesity and diabetes in a deal worth up to $2.6 billion. The transaction was announced on September 29 and is expected to close in the fourth quarter of 2026.
Under the agreement, Novo will obtain exclusive rights to develop, manufacture and commercialize HRS-1596 outside of Greater China. The potential total value of the agreement is up to $2.6 billion contingent on the achievement of certain development, regulatory and commercial milestones. This includes a $300 million upfront payment. Hengrui Pharma is eligible to receive royalties based on net sales of HRS-1596 within the licensing territory.
The drug candidate 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.
The Ropes & Gray team was led by life sciences licensing partner Hannah England and associate Ian Nilsen and included life sciences partner Katherine Wang and associate Sabrina Kim.
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