(Reuters) -Danish drugmaker Novo Nordisk has secured the global rights to develop, manufacture and sell China-based United Laboratories International's ( ULIHF ) weight-loss drug candidate in a deal worth up to $2 billion.

As part of the agreement with a United Lab unit announced on Monday, Novo will make an upfront payment of $200 million and up to $1.8 billion upon the completion of certain development and sales milestones for the drug candidate, UBT251.

Novo, which is one of the top players in the burgeoning global obesity treatment market, has been trying to strengthen its foothold in the space through the development of next-generation drugs, acquisitions and partnerships.

Last year, rival ELi Lilly ( LLY ) also teamed up with a China-based biotech to develop an obesity drug that aims to help patients lose weight while preserving muscle.

United Lab's UBT251 targets a total of three hormones, compared to Novo's blockbuster weight-loss drug, Wegovy, which targets only GLP-1, mimicking a gut hormone that helps control blood sugar levels and slow digestion, making people feel fuller for longer.

The drug, in the early stages of development, is currently being tested in mid-stage trials in people with obesity in China mainland, United Lab said.

Novo is also developing a next-generation obesity drug, CagriSema, which it hopes would be a more potent successor to Wegovy and help gain an edge over Lilly.

United Lab's unit will retain the rights for UBT251 in China mainland, the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan, the Chinese drugmaker said.

(Reporting by Mariam Sunny in Bengaluru; Editing by Shinjini Ganguli)