Novo Nordisk Acquires Lexicon’s LX9851 for $1B to Expand Weight Loss Drug Portfolio

Lexicon Pharmaceuticals (Lexicon), a U.S. biopharmaceutical company, announced recently in The Woodlands, Texas, that it has entered into an exclusive licensing agreement with Danish pharmaceutical giant Novo Nordisk. Under the agreement, Novo Nordisk gains global exclusive rights to develop, manufacture, and commercialize LX9851, a novel oral non-incretin candidate targeting obesity and related metabolic disorders. Lexicon will complete mutually agreed-upon IND-related activities, while Novo Nordisk will be responsible for filing the IND application. The deal includes an upfront payment and near-term milestone payments totaling up to US$75 million. With additional payments for development, regulatory milestones, and commercial success, Lexicon could receive up to US$1 billion. Furthermore, Lexicon will earn tiered royalties on LX9851’s net sales.

LX9851’s Novel Mechanism Enhances Semaglutide Efficacy

LX9851, discovered and developed by Lexicon, is a highly potent and selective oral small molecule inhibitor of acyl-CoA synthetase 5 (ACSL5), a key enzyme in fat accumulation and energy balance regulation. LX9851 may also activate the ileal brake mechanism, delaying gastric emptying, suppressing appetite, and enhancing satiety. Preclinical in vivo data presented at Obesity Week 2024 showed that LX9851, when combined with semaglutide, significantly reduced body weight, food intake, and fat mass compared to semaglutide alone. Additionally, after discontinuation of semaglutide, introducing LX9851 effectively prevented weight gain again and improved liver steatosis.

Dr. Mike Exton, CEO and Director of Lexicon, stated, “We are pleased that Novo Nordisk, a global leader in diabetes and obesity treatment, recognizes the potential of LX9851. This collaboration strengthens our financial position, enabling greater flexibility to invest in R&D and accelerate innovation.”

Jacob Sten Petersen, Senior Vice President of Diabetes, Obesity, and MASH at Novo Nordisk, commented, “Novo Nordisk is committed to addressing the diverse needs of patients with obesity and metabolic disorders by building a differentiated pipeline of innovative treatments. We are excited to collaborate with Lexicon to further explore new biological mechanisms and potential therapies, building upon Lexicon’s excellent research foundation for LX9851.”

Semaglutide Shows Improved Mobility in Diabetic Patients

A study published on March 29 in The Lancet revealed that semaglutide significantly increased walking distance in patients with symptomatic peripheral artery disease (PAD) and type 2 diabetes. These findings suggest the need for further research into its beneficial mechanisms and its potential efficacy and safety in PAD patients without diabetes.

Additionally, The New England Journal of Medicine published another study on March 29. It showed that oral semaglutide use in patients with type 2 diabetes and atherosclerotic cardiovascular disease (ASCVD), chronic kidney disease (CKD), or both was associated with a significant reduction in major adverse cardiovascular events (MACE) without increasing serious adverse events.

Eli Lilly and Novo Nordisk Locked in Escalating Weight Loss Drug Rivalry

This marks Novo Nordisk’s second major weight loss drug licensing deal in recent weeks. On March 24, Novo Nordisk secured another weight loss drug from The United Laboratories International, a Chinese pharmaceutical company, with an upfront payment of US$200 million and a total potential deal value of up to US$1.8 billion.

Novo Nordisk’s Wegovy (semaglutide) faces strong competition from Eli Lilly and Company’s Zepbound (tirzepatide), a dual GLP-1/GIP agonist, which has demonstrated superior weight loss efficacy in clinical trials. Despite Wegovy generating approximately US$8 billion in annual revenue, Zepbound’s stronger clinical performance has intensified competition. To maintain its leadership in the obesity market and related indications, Novo Nordisk is actively acquiring promising weight loss drug candidates and building a diversified and differentiated pipeline to address future market challenges.

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Author

Steven Chung

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