Novo inks second obesity deal of the week, with Lexicon oral drug partnership worth up to $1B
Novo Nordisk's $1B Obesity Drug Deal with Lexicon Pharmaceuticals
Novo Nordisk has entered into an exclusive license agreement with Lexicon Pharmaceuticals for LX9851, a first-in-class oral obesity drug candidate1. This deal marks Novo's second obesity-related partnership in a week, highlighting the company's aggressive expansion in the obesity treatment market.
Key Details of the Agreement
- Deal Value:
Up to $1 billion, including $75 million in upfront and near-term milestone payments2
- Drug Candidate:
LX9851, an oral small molecule inhibitor of Acyl-CoA Synthetase 5 (ACSL5)12
- Rights:
Novo Nordisk obtains exclusive, worldwide rights to develop, manufacture, and commercialize LX9851 for all indications1
### LX9851:
A Promising Obesity Treatment
LX9851 offers a unique approach to obesity treatment:
- Mechanism:
Targets ACSL5, regulating fat accumulation and energy balance2
- Potential Benefits:
May activate the ileal brake mechanism, increasing satiety and delaying gastric emptying2
- Synergy with GLP-1 Agonists:
Preclinical data showed enhanced weight loss when combined with semaglutide1
Strategic Implications
This deal aligns with Novo Nordisk's strategy to maintain dominance in the obesity space by adding complementary mechanisms to pair with their GLP-1 franchise1. For Lexicon, it provides financial flexibility and validates their obesity platform1.
Broader Context
Novo Nordisk's recent dealmaking streak in obesity treatments includes:
- A $1.8 billion licensing agreement with The United Laboratories for a triple receptor agonist4
- A $354 million collaboration with Gensaic for cardiometabolic therapy candidates4
These partnerships underscore the growing competition and investment in the obesity treatment market, with companies like Eli Lilly also actively pursuing deals in this space14.
Sources:
1. https://medcitynews.com/2025/03/novo-nordisk-obesity-weight-loss-lexicon-acls5-glp1-nvs-lxrx/
2. https://www.stocktitan.net/news/LXRX/lexicon-pharmaceuticals-announces-exclusive-license-agreement-with-hgi609mi2x4t.html
4. https://www.pharmexec.com/view/novo-nordisk-licensing-deal-lexicon-pharmaceuticals-novel-obesity-candidate
14. https://www.biospace.com/deals/lilly-haya-ink-potential-1b-drug-discovery-deal-to-target-obesity-and-metabolic-conditions