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Novo Nordisk’s $2.6 Billion Obesity Bet: Can It Catch Eli Lilly Again?

Novo Nordisk is escalating its obesity strategy at a time when competition with Eli Lilly is becoming more intense, pricing pressure is rising, and the long-term exclusivity of semaglutide is beginning to weaken in some markets. Its latest move is a licensing agreement worth up to $2.6 billion for HRS-1596, an experimental oral GLP-1/GIP drug from Jiangsu Hengrui Pharmaceuticals that could eventually be taken once weekly. Only $300 million is being paid upfront, with the balance tied to future development and commercial milestones, but the transaction still highlights how aggressively Novo is searching for the next generation of obesity treatments. The company is simultaneously investing in pills, injectable combinations, triple agonists and longer-duration technologies while restructuring its cost base.