Novo Nordisk To Pay $2 Billion for New Weight Loss Drug
By I. Edwards HealthDay Reporter
TUESDAY, March 25, 2025 -- Novo Nordisk, a Danish pharmaceutical company, has signed a major deal worth up to $2 billion for the rights to a new obesity and diabetes drug, the company announced March 24.
The drug, called UBT251, is being developed by United Bio-Technology (Hengqin) Co., a Chinese pharmaceutical company.
Novo Nordisk will pay $200 million up front, with up to $1.8 billion in additional payments down the line, The Wall Street Journal reported.
The company also agreed to pay royalties based on future sales.
Novo Nordisk now holds the exclusive rights to develop, manufacture and sell the drug worldwide, except in mainland China, Hong Kong, Macau and Taiwan.
UBT251 is different from Novo Nordisk’s current drugs like Ozempic and Wegovy.
The drug combines GLP-1 and GIP, which lower appetite and blood sugar, with glucagon, which helps prevent dangerously low blood sugar levels.
“The addition of a candidate targeting glucagon, as well as GLP-1 and GIP, will add important optionality to our clinical pipeline, as we look to develop a broad portfolio of differentiated treatment options that cater to the diverse needs of people living with these highly prevalent diseases,” Martin Holst Lange, executive vice president for development at Novo Nordisk, told The Wall Street Journal.
UBT251 is already approved for early clinical trials in China for adults with type 2 diabetes, fatty liver disease, chronic kidney disease and those who are overweight or obese. It is also approved for similar trials in the U.S.
The deal comes as Novo Nordisk works to expand its lineup of advanced weight-loss treatments.
Although the company’s drugs have been popular, trials of some of its experimental treatments have had mixed results.
Investors are also watching closely because of concerns over pricing in the U.S. and growing competition in the obesity drug market.
Novo Nordisk’s main rival, Eli Lilly, makes the GLP-1/GIP drug tirzepatide, sold as Zepbound and Mounjaro. Eli Lilly is also working on a next-generation drug, retatrutide,
Sources
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Source: HealthDay
Posted : 2025-03-26 06:00
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