Novo Nordisk and The United Bio-Technology (Hengqin) Co., Ltd. have entered into an exclusive license agreement for UBT251, a triple agonist of the receptors for GLP-1, GIP, and glucagon in early-stage clinical development for the treatment of obesity, type 2 diabetes, and other diseases.

Under the license agreement, Novo Nordisk will obtain exclusive worldwide rights to develop, manufacture, and commercialize UBT251. United Biotechnology will retain the rights for UBT251 in the Chinese mainland, Hong Kong, Macau, and Taiwan.

United Biotechnology is eligible to receive an upfront payment of $200 million and potential milestone payments of up to $1.8 billion from Novo Nordisk, as well as tiered royalties on net sales outside of the Chinese mainland, Hong Kong, Macau, and Taiwan.

This move may be seen as a bid by Novo Nordisk to maintain its weight-loss leadership as Lilly pushes ahead in its clinical assessment of its triple-G agonist reatrutide.

“Novo Nordisk is dedicated to providing improved treatment options for people living with obesity, type 2 diabetes, and other cardiometabolic diseases. 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 that cater to the diverse needs of people living with these highly prevalent diseases,” said Martin Holst Lange, executive vice president for Development at Novo Nordisk. “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.”

The closing of this transaction is subject to applicable regulatory clearance and other customary closing conditions.