Novo Nordisk has acquired the global rights to China-based United Laboratories’ triple-agonist weight-loss and diabetes drug in a deal worth up to $2bn as the Wegovy (semalgutide) developer seeks a successor for its blockbuster drug.
The licence agreement includes a $200m upfront payment to United Laboratories’ subsidiary United Biotechnology, along with $1.8bn in milestone-based payments. United Biotechnology will retain rights to the drug in the Chinese mainland, Hong Kong, Macau, and Taiwan while Novo Nordisk will be able to develop, manufacture and commercialise it in other global regions.
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United Laboratories’ candidate, dubbed UBT251, belongs to a class of weight loss drugs that potentially elicit greater weight loss than the popular and currently available 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 comparison, Wegovy inhibits GLP-1 while Eli Lilly’s competitor Zepbound (tirzapetide) is a double agonist of both GLP-1 and GIP.
UBT251 has already produced positive data in a randomised Phase Ib trial in China. Among 36 patients to receive a subcutaneous 6mg dose of the drug over 12 weeks, an average weight loss of 15.1% was recorded.
Eli Lilly already has a triple G agonist in clinical development called retatrutide. The drug, currently in a Phase III trial (NCT05882045), helped patients lose up to 24.2% of their weight after 48 weeks of treatment in a Phase II study (NCT04881760). Though comparisons between trials are hard to analyse, UBT251 could offer a faster route to achieving weight loss, albeit with a smaller average weight loss value. Further data will come from a Phase II trial with UBT251, which was recently initiated by United Biotechnology in China.
Novo Nordisk’s deal with United Biotechnology continues a growing trend of big pharma partnerships with Chinese biotechs for metabolic disorder treatments. MSD conducted a $2bn deal for Hansoh’s GLP-1RA in 2024 whilst Eli Lilly entered a collaboration with Laekna for an antibody to treat obesity.
Europe’s second most valuable company
The deal with United Biotechnology comes at a time of investor concern around Novo Nordisk’s ability to maintain dominance in the weight loss market. Shares in the company have been sliding throughout 2025 amid pressures from competitors. Despite holding a market cap of $340.4bn, the drugmaker yesterday [24 March] also lost its tag as Europe’s most valuable company to software group SAG.
Although Wegovy generated around $8bn in revenue last year, Novo Nordisk has seen its market share eroded by Eli Lilly’s Zepbound due to the latter’s slightly better efficacy. Zepbound is forecast to make $28.2bn by 2031 while Wegovy is slated to see sales of $26bn, according to analysis by GlobalData’s Pharma Intelligence Center.
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The pressure exerted by Eli Lilly has been compounded by disappointing data released on Novo Nordisk’s next-generation weight loss drug candidate CagriSema at the tail end of 2024. Shares in the company took a hit following concern about CagriSema’s ability to succeed Wegovy, meaning the spotlight will be on future readouts from United Biotechnology’s UBT251 and its ability to pick up the mantle.
“The addition of a candidate targeting glucagon, as well as GLP-1 and GIP, will add important optionality to our clinical pipeline, as we look to develop a broad portfolio of differentiated treatment options that cater to the diverse needs of people living with these highly prevalent diseases,” said Martin Holst Lange, Novo Nordisk’s executive vice president for development.
