Novo Nordisk earmarks $2bn for Chinese language “triple G” weight reduction shot

Novo Nordisk’s newly acquired asset has already produced optimistic information in a randomised Part Ib trial in China. Picture credit score: Shutterstock/ Michael Vi.

Novo Nordisk has acquired the worldwide rights to China-based United Laboratories’ triple-agonist weight-loss and diabetes drug in a deal price as much as $2bn because the Wegovy (semalgutide) developer seeks a successor for its blockbuster drug.

The licence settlement features a $200m upfront cost to United Laboratories’ subsidiary United Biotechnology, together with $1.8bn in milestone-based funds. United Biotechnology will retain rights to the drug within the Chinese language mainland, Hong Kong, Macau, and Taiwan whereas Novo Nordisk will have the ability to develop, manufacture and commercialise it in different world areas.

United Laboratories’ candidate, dubbed UBT251, belongs to a category of weight reduction medicine that probably elicit larger weight reduction than the favored and at the moment accessible glucagon-like peptide-1 receptor agonists (GLP-1RAs). UBT251, a so-called “triple G” agonist, targets GLP-1, gastric inhibitory polypeptide (GIP) and glucagon. For comparability, Wegovy inhibits GLP-1 whereas Eli Lilly’s competitor Zepbound (tirzapetide) is a double agonist of each GLP-1 and GIP.

UBT251 has already produced optimistic information in a randomised Part Ib trial in China. Amongst 36 sufferers to obtain a subcutaneous 6mg dose of the drug over 12 weeks, a median weight lack of 15.1% was recorded.

Eli Lilly already has a triple G agonist in scientific improvement known as retatrutide. The drug, at the moment in a Part III trial (NCT05882045), helped sufferers lose as much as 24.2% of their weight after 48 weeks of remedy in a Part II research (NCT04881760). Although comparisons between trials are onerous to analyse, UBT251 may provide a sooner path to reaching weight reduction, albeit with a smaller common weight reduction worth. Additional information will come from a Part II trial with UBT251, which was lately initiated by United Biotechnology in China.

Novo Nordisk’s cope with United Biotechnology continues a rising pattern of huge pharma partnerships with Chinese language biotechs for metabolic dysfunction remedies. MSD carried out a $2bn deal for Hansoh’s GLP-1RA in 2024 while Eli Lilly entered a collaboration with Laekna for an antibody to deal with weight problems.

Europe’s second most beneficial firm

The cope with United Biotechnology comes at a time of investor concern round Novo Nordisk’s capability to take care of dominance within the weight reduction market. Shares within the firm have been sliding all through 2025 amid pressures from rivals. Regardless of holding a market cap of $340.4bn, the drugmaker yesterday [24 March] additionally misplaced its tag as Europe’s most beneficial firm to software program group SAG.

Though Wegovy generated round $8bn in income final yr, Novo Nordisk has seen its market share eroded by Eli Lilly’s Zepbound because of the latter’s barely higher efficacy. Zepbound is forecast to make $28.2bn by 2031 whereas Wegovy is slated to see gross sales of $26bn, in keeping with evaluation by GlobalData’s Pharma Intelligence Heart.

GlobalData is a mother or father firm of Pharmaceutical Expertise.

The stress exerted by Eli Lilly has been compounded by disappointing information launched on Novo Nordisk’s next-generation weight reduction drug candidate CagriSema on the tail finish of 2024. Shares within the firm took a success following concern about CagriSema’s capability to succeed Wegovy, which means the highlight can be on future readouts from United Biotechnology’s UBT251 and its capability to choose up the mantle.

“The addition of a candidate concentrating on glucagon, in addition to GLP-1 and GIP, will add essential optionality to our scientific pipeline, as we glance to develop a broad portfolio of differentiated remedy choices that cater to the varied wants of individuals dwelling with these extremely prevalent illnesses,” mentioned Martin Holst Lange, Novo Nordisk’s government vice chairman for improvement.