(Yicai) Sept. 29 -- Shares of Hengrui Pharmaceuticals rose today after the Chinese drugmaker licensed the overseas rights to an investigational oral weight-loss drug to Danish pharmaceutical giant Novo Nordisk in a deal worth up to USD2.6 billion.

Hengrui [SHA: 600276] closed 2.6 percent higher at CNY45.62 (USD6.80) in Shanghai after rising as much as 3.7 percent intraday. Its Hong Kong-listed shares [HK: 01276] advanced 1.9 percent to HKD45.60 (USD5.80).

Hengrui has granted Novo Nordisk exclusive rights to develop, manufacture, and commercialize HRS-1596, its investigational once-weekly oral glucagon-like peptide-1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) dual receptor agonist, outside the Chinese mainland, Hong Kong, Macao, and Taiwan, the Jiangsu province-headquartered company announced today.

HRS-1596 is a GLP-1/GIP dual receptor agonist independently developed by Hengrui that aims to reduce weight and improve blood glucose control through multiple mechanisms, including suppressing appetite, promoting insulin secretion, and improving insulin sensitivity, according to the announcement.

The agreement with Novo Nordisk will help provide high-quality treatment options to patients worldwide and enable HRS-1596 to rapidly expand into overseas markets with the support of a leading international partner, Hengrui said.

The licensing collaboration will also help Hengrui accelerate its integration into the global pharmaceutical innovation network and maximize the value of its products, the company added.

The potential value of the deal is up to USD2.6 billion, including an upfront payment of USD300 million and milestone payments tied to the achievement of key development, regulatory, and commercialization targets. Hengrui will also be eligible for royalties based on a percentage of net sales of HRS-1596 in the licensed territories.

The drug candidate has the potential to treat obesity, type 2 diabetes, and other metabolic diseases, Hengrui said. Compared with existing treatment options, HRS-1596 could significantly reduce dosing frequency and improve treatment convenience, it added. HRS-1596 has been approved in China to begin Phase I clinical trials for weight management and the treatment of type 2 diabetes.

Editor: Emmi Laine