Novo Nordisk strikes $1bn deal for Lexicon’s oral weight problems drug

The weight problems therapy market is projected to achieve $206.5bn by 2031, as per GlobalData. Credit score: Cunaplus_M.Faba through Getty Photos.

Novo Nordisk has signed a deal value as much as $1bn with Lexicon Prescribed drugs for the unique world rights to LX9851, an experimental oral therapy for weight problems and associated metabolic issues.

Beneath the settlement, Lexicon will full sure preclinical actions earlier than Novo Nordisk takes over improvement, manufacturing, and commercialisation.

Lexicon will obtain $75m in upfront and near-term milestone funds, with the potential to earn as much as $1bn in complete, together with improvement, regulatory, and sales-based milestones.

Following the announcement, Lexicon’s inventory has soared by 85%, from a market shut of $0.35 yesterday (27 March) to a market open of $0.65 right this moment. Novo Nordisk’s inventory has remained steady on the information.

LX9851 targets Acyl-CoA Synthetase 5 (ACSL5), an enzyme concerned in fats metabolism and vitality steadiness. Preclinical information introduced at Weight problems Week in Texas, US in November 2024 urged that combining LX9851 with Novo Nordisk’s flagship drug semaglutide, marketed as Ozempic in kind 2 diabetes and Wegovy in weight problems, led to higher weight reduction and reductions in meals consumption and fats mass in comparison with semaglutide alone. The information additionally signifies that LX9851 may assist stop weight regain after stopping semaglutide therapy.

Within the announcement accompanying the deal, Novo Nordisk’s diabetes, weight problems and MASH therapeutic areas senior vice chairman Jacob Sten Petersen mentioned: “We’re happy to enter this settlement with Lexicon as it is going to enable us to discover a novel biology and potential therapy paradigm additional.”

The deal comes as Novo Nordisk strikes to strengthen its place within the weight problems therapy market, which is projected to achieve $206.5bn by 2031, based on a report on GlobalData’s Pharma Intelligence Heart. The Danish pharma large has dominated the area with its blockbuster glucagon-like peptide 1 receptor agonist (GLP-1RA) Wegovy however faces rising competitors from Eli Lilly’s Zepbound (tirzepatide) as a result of Zepbound’s barely higher efficacy.

Zepbound is forecast to make $28.2bn by 2031 whereas Wegovy is slated to see gross sales of $26bn, based on evaluation by GlobalData.

GlobalData is the mother or father firm of Pharmaceutical Know-how.

There was an rising demand for weight-loss remedies, particularly oral candidates that might be simpler to manage. In January 2025, UK-based Verdiva Bio launched with $410m and a pipeline of next-generation oral and injectable therapies.

Novo Nordisk has been actively increasing its weight problems and metabolic illness pipeline. The Lexicon settlement follows the corporate’s $2bn acquisition of a “triple-G” injectable weight problems drug UBT251 from China-based United Laboratories earlier this week (25 March). UBT251 generated optimistic information in a randomised Part Ib trial in China. 36 sufferers that acquired a subcutaneous 6mg dose of the drug over 12 weeks, reported a median weight lack of 15.1%.

In January 2025, Novo Nordisk additionally invested $50m upfront in Variant Bio to discover genetic targets for weight problems and metabolic illnesses. In March, Novo Nordisk signed a deal with AI-driven protein design firm Gensaic to develop tissue-targeted therapies for cardiometabolic illnesses.