Novo Nordisk Reaches Licensing Deal with Lexicon Pharmaceuticals for Novel Obesity Candidate

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Novo Nordisk is expanding its obesity drug pipeline through a major licensing agreement with Lexicon Pharmaceuticals, acquiring the global rights to LX9851, a first-in-class oral therapy targeting metabolic disorders.

Under the terms of the agreement, Novo Nordisk will develop, manufacture, and commercialize LX9851 worldwide, while Lexicon will complete investigational new drug application (NDA)-enabling activities before transferring developmental responsibilities. Lexicon will receive $75 million in upfront and near-term milestone payments, with the potential for total payments reaching $1 billion, plus tiered royalties on net sales.¹

"We are thrilled that Novo Nordisk, a global leader in diabetes care and obesity management, has recognized the potential of LX9851," said Mike Exton, PhD, CEO, director, Lexicon, in a press release. "This arrangement decisively strengthens our financial position, providing optionality as we further invest and accelerate our R&D portfolio.”

Preclinical data presented at Obesity Week 2024 demonstrated that when combined with semaglutide, LX9851 enhanced weight reduction, appetite suppression, and mitigated weight regain post-treatment.¹

This deal aligns with Lexicon’s strategic shift toward research and development, following its decision in November 2024 to eliminate its commercial operations and cut 60% of its workforce. The restructuring, prompted by an FDA letter identifying deficiencies in the NDA for Zynquista (sotagliflozin), was designed to preserve cash and refocus on promising candidates such as LX9851.²

Novo Nordisk’s agreement with Lexicon marks its second deal this week and third this month. On Monday, the company announced a potential $1.8 billion licensing agreement with The United Laboratories (TUL) for UBT251, a triple receptor agonist targeting GLP-1, GIP, and glucagon. TUL will retain rights in mainland China, Hong Kong, Macau, and Taiwan. Earlier in March, Novo Nordisk entered a $354 million collaboration with Gensaic to develop cardiometabolic therapy candidates, with an option for additional milestone and royalty payments.³

“Novo Nordisk is committed to serving the diverse needs of people living with obesity and other metabolic diseases and to build a pipeline of differentiated drug candidates in this space,” said Jacob Sten Petersen, SVP, Diabetes, obesity, MASH therapeutic area, Novo Nordisk, in the press release. “We are pleased to enter this agreement with Lexicon as it will allow us to explore a novel biology and potential treatment paradigm further, and we look forward to building on the great work Lexicon has already done with the development of LX9851.”