10:26 AM EDT, 03/24/2025 (MT Newswires) -- Novo Nordisk ( NVO ) secured exclusive global rights to United Laboratories International's therapeutic candidate for obesity and type 2 diabetes in a licensing deal worth up to $2 billion.

The product called UBT251 targets the receptors for glucagon-like peptide-1, or GLP-1, glucose-dependent insulinotropic polypeptide, or GIP, and glucagon. The drug is currently in a phase 2 clinical trial in China.

Under a licensing agreement with the Chinese company's United Bio-Technology (Hengqin) unit, Danish pharmaceutical giant Novo Nordisk ( NVO ) will manufacture and commercialize the drug around the world, apart from in China, Hong Kong, Macau and Taiwan, according to a joint statement.

Novo will pay United Bio-Technology $200 million upfront and up to $1.8 billion in potential milestone payments, as well as tiered royalties on sales outside of China, Hong Kong, Macau and Taiwan. The deal requires approval from regulators.

"The addition of a candidate targeting glucagon, as well as GLP-1 and GIP, will add important optionality to our clinical pipeline, as we look to develop a broad portfolio of differentiated treatment options," Martin Holst Lange, executive vice president for development at Novo Nordisk ( NVO ) said. "We look forward to building on United Biotechnology's scientific work and further exploring the potential best-in-class properties of UBT251 across cardiometabolic disease indications."

United Bio-Technology recently completed a phase 1b trial of UBT251 in China, covering 36 overweight or obese people. In the highest dose group, the drug reduced the average weight of patients by 15.1% from the baseline, according to the joint statement.

"(United Laboratories) is committed to strengthening its presence in the treatment of chronic diseases, including endocrine and metabolic disorders, while actively expanding its footprint in global markets," Chairman Tsoi Hoi Shan said. "We believe that Novo Nordisk's ( NVO ) expertise will play a key role in accelerating the global development of UBT251."

Earlier in the month, Novo Nordisk ( NVO ) disclosed the latest trial results of its investigative weight loss drug, called CagriSema, which met its primary endpoint but fell short of its own initial weight reduction expectations.

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