Hengrui Shares Rise on $2.6 Billion Novo Nordisk Obesity Drug Deal

Jiangsu Hengrui Pharmaceuticals shares climbed in Hong Kong on Tuesday after Novo Nordisk agreed to license the Chinese drugmaker’s experimental obesity and diabetes treatment in a deal potentially worth up to $2.6 billion.

Hengrui shares gained 1.5% to HK$45.44, outperforming the broader Hang Seng Index, which fell about 1%.

Under the licensing agreement, Novo Nordisk will receive exclusive global rights to develop, manufacture and commercialize HRS-1596 outside mainland China, Hong Kong, Macao and Taiwan. The deal strengthens Novo Nordisk’s pipeline as the Danish pharmaceutical company expands its portfolio of next-generation obesity and diabetes treatments.

Hengrui will receive an upfront payment of $300 million. The Chinese drugmaker is also eligible for development, regulatory and commercial milestone payments that could bring the total value of the agreement to as much as $2.6 billion. In addition, Hengrui will receive royalties on net sales of HRS-1596 across the licensed territories.

HRS-1596 is a phase 1-ready GLP-1/GIP dual receptor agonist being developed as a potential once-weekly oral treatment. The candidate is designed to promote weight loss and improve blood glucose control through several mechanisms, including suppressing appetite, stimulating insulin secretion and improving insulin sensitivity.

Hengrui has already received regulatory approval in China to begin phase 1 clinical trials of HRS-1596 for weight management and type 2 diabetes. Novo Nordisk said the experimental therapy will become part of its broader oral peptide pipeline.

The agreement comes as pharmaceutical companies intensify efforts to develop more convenient obesity treatments, particularly oral alternatives to injectable GLP-1 drugs.

Completion of the Novo Nordisk-Hengrui transaction remains subject to U.S. antitrust approval and other customary closing conditions. The companies expect the licensing deal to close during the fourth quarter of 2026.