Mentioned:
Novo Nordisk is pouring hundreds of millions into a new GLP-1 pill. But, why?
What’s happening:
- Novo Nordisk (NYSE: NVO) has licensed the rights to Hengrui’s oral GLP-1 drug known as HRS-1596 for $300M USD upfront and up to $2.6B USD in total milestone payments and royalties
Why it matters:
- Hengrui’s HRS-1596 is aiming to be taken just once a week versus current GLP-1 pills which are required to be taken daily
Going deeper:
- Novo Nordisk’s new deal with Hengrui gives them the exclusive rights to develop, manufacture and sell HRS-1596 globally, with the exception of in China, Hong Kong, Macao and Taiwan
- Hengrui has received regulatory approval in China for HRS-1596 to begin Phase I trials for both weight management and treating type 2 diabetes
The intrigue:
- The global boom in GLP-1 drugs has also recently led to multiple public and private companies investing heavily in clinical research and new product development to target the aesthetic effects caused by GLP-1 induced rapid weight loss, which Boston Consulting Group notably estimates could become a $2B USD a year opportunity within the next four years
