Novo Nordisk (NYSE: NVO) has entered into a license agreement with Hengrui Pharma (600276.SH; 01276.HK) for HRS-1596, a phase 1-ready drug candidate designed as a dual agonist targeting GLP-1 and GIP receptors, with potential for once-weekly oral dosing.

Under the agreement, Novo Nordisk will receive exclusive rights to develop, manufacture, and commercialize HRS-1596 globally, excluding mainland China, Hong Kong, Macao, and Taiwan. The deal includes a $300 million upfront payment, with total potential value reaching up to $2.6 billion, contingent on development, regulatory, and commercial milestones. Hengrui Pharma is also eligible to receive royalties based on net sales within the licensed territory.

HRS-1596 is designed to reduce weight and improve glycemic control through appetite suppression, stimulation of insulin secretion, and improved insulin sensitivity. The compound is being explored for potential use in obesity, type 2 diabetes, and other metabolic diseases. Hengrui Pharma has received approval in China to initiate phase 1 clinical trials for weight management and type 2 diabetes.

The agreement is subject to clearance under the U.S. Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The transaction is expected to close in the fourth quarter of 2026.