Novo Nordisk To Pay Around $2 Billion For Obesity Drug From China-Based Biotech

Zinger Key Points

United Biotechnology will get $200M upfront, up to $1.8B in milestones, and royalties as part of its UBT251 licensing deal with Novo Nordisk
A phase 1b trial of UBT251 showed a 15.1% weight loss in the highest dose group, while the placebo group gained 1.5% weight on average.
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On Monday, The United Laboratories International Holdings Limited (TUL) and Novo Nordisk A/S NVO entered into an exclusive license agreement for an obesity drug.

Under the license agreement, Novo Nordisk will obtain exclusive worldwide rights (excluding Chinese mainland, Hong Kong, Macau, and Taiwan) to develop, manufacture, and commercialize UBT251.

United Biotechnology will retain the rights for UBT251 in the Chinese mainland, Hong Kong, Macau, and Taiwan.

Also Read: UK Pharma Industry Trade Association Restores Wegovy/Ozempic Maker Novo Nordisk’s Membership After 2 Years Of Suspension

United Biotechnology is eligible to receive an upfront payment of $200 million, potential milestone payments of up to $1.8 billion from Novo Nordisk, and tiered royalties on net sales outside the Chinese mainland, Hong Kong, Macau, and Taiwan.

United Biotechnology recently completed a phase 1b trial in China designed to evaluate the safety, tolerability, pharmacokinetics, and pharmacodynamics of multiple subcutaneous injections of UBT251 in people with overweight or obesity.

36 patients were enrolled in three different dose groups (1mg, 1mg/3mg, 1mg/3mg/6mg).

In the highest dose group, the average weight of the people who completed the trial decreased by 15.1% from baseline. The average weight of people in the placebo group increased by 1.5%.

United Biotechnology recently initiated a phase 2 trial for UBT251 in people with overweight or obesity in China.

Earlier this month, Novo Nordisk announced headline results from the REDEFINE 2 phase 3 trial in the global REDEFINE program.

People treated with CagriSema achieved a weight loss of 15.7% after 68 weeks compared to 3.1% with placebo.

A co-primary endpoint was a weight loss of 5% or more after 68 weeks. This was achieved by 89.7% of patients on CagriSema, compared to 30.3% by placebo.

Price Action: NVO stock is down 2.54% at $74.91 at the last check Monday.

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