Novo Nordisk Strikes $2B Deal for Obesity Drug

Novo Nordisk (NVO) has signed an exclusive global licensing deal worth up to $2 billion for UBT251, a weight-loss drug developed by China-based The United Laboratories International Holdings Limited.

U.S.-listed shares of Novo Nordisk, which produces obesity drugs Ozempic and Wegovy, are falling more than 2% in premarket trading Monday.

Novo Nordisk will pay an up front $200 million, potential milestone payments of up to $1.8 billion, and also tiered royalties, the Danish drug developer said in a joint statement with the Chinese firm. The licensing deal does not include Chinese mainland, Hong Kong, Macau, or Taiwan, according to Monday’s news release.

The companies said UBT251 has been approved for clinical trials in China in adult type 2 diabetes, overweight or obesity, metabolic dysfunction-associated fatty liver disease, and chronic kidney diseases. It has been approved for U.S. clinical trials for adult type 2 diabetes, overweight or obesity, and chronic kidney disease, according to the companies.

The announcement came as Novo Nordisk announced it was expanding its offer for cash-paying patients to access to its Wegovy (semaglutide) injection 0.25 mg, 0.5 mg, 1 mg, 1.7 mg, and 2.4 mg at local pharmacies for $499 per month. Previously, the $499-per month offer was only open to patients at its NovoCare Pharmacy.