By Mackenzie Tatananni
Novo Nordisk said Monday that it had entered into a license agreement with a Chinese company developing a competitor to Novo's Ozempic.
The Danish pharma giant said it would pay $200 million upfront and up to $1.8 billion in milestone payments to United Laboratories International for the rights to UBT251, a drug in early-stage clinical development for the treatment of type 2 diabetes, obesity, and other diseases.
UBT251 is what's known as a "triple agonist." It binds to the body's receptors for GLP-1, GIP, and glucagon, mimicking the effects of the hormones to manage blood sugar levels and promote insulin secretion.
United Biotechnology, a subsidiary wholly owned by United Laboratories International, will retain the rights for UBT251 in the Chinese mainland, Hong Kong, Macau, and Taiwan. Novo Nordisk will be granted exclusive rights to develop, manufacture, and commercialize the drug elsewhere.
Novo Nordisk is currently a leader in the U.S. market for GLP-1 drugs. The company is the maker of Ozempic and Wegovy, two differently branded versions of the same semaglutide drug that are approved for diabetes treatment and weight loss, respectively.
U.S.-listed shares of Novo Nordisk fell 2.2% to $75.20 in premarket trading Monday. Futures tracking the S&P 500 were up 1.1%.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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(END) Dow Jones Newswires
March 24, 2025 07:42 ET (11:42 GMT)
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