Novo Nordisk expands obesity drug pipeline with $2 billion "Triple-G" acquisition

Novo Nordisk has secured global rights to China-based United Laboratories International's experimental weight-loss drug, UBT251, in a deal worth up to $2 billion.

This strategic acquisition strengthens Novo’s position in the obesity sector, projected to be worth $150 billion. The company is pushing forward with next-generation treatments, aiming to stay competitive through drug development, acquisitions, and partnerships.

UBT251 is part of an emerging class of weight-loss drugs that go beyond the widely used GLP-1 receptor agonists, such as Novo’s own Wegovy and competitor Eli Lilly’s Zepbound. While these existing medications primarily target the GLP-1 hormone, UBT251 works on three fronts — GLP-1, GIP, and glucagon — giving it the nickname "triple G." This triple-action mechanism could potentially lead to greater weight loss compared to current treatments.

Eli Lilly is also developing a similar "triple G" drug, retatrutide, which has shown promising results, helping patients lose up to 24.2 per cent of their body weight in a mid-stage study.

Novo Nordisk will pay $200 million upfront for the licensing rights to UBT251, with additional milestone payments of up to $1.8 billion based on the drug’s progress. United Laboratories will retain rights to the drug in select regions, including Mainland China and Taiwan.

This deal is part of a larger trend where major pharmaceutical companies are turning to Chinese biotech firms for early-stage drug licensing. Last year, both Merck and Eli Lilly signed similar agreements with Chinese companies to advance their obesity drug portfolios.

With the race to dominate the obesity market heating up, Novo’s acquisition of UBT251 could be a game-changer. If the drug proves successful, it may redefine the future of weight-loss treatments and help millions struggling with obesity worldwide.