Healthy Returns: Novo Nordisk scoops up Chinese obesity drug to compete with Eli Lilly

Core Viewpoint - Novo Nordisk is strategically targeting its competitor Eli Lilly by acquiring rights to an experimental obesity drug, UBT251, from United Laboratories International for up to $2 billion, indicating a competitive move in the obesity treatment market [2][3][7]. Financial Details - The deal involves an upfront payment of$200 million, with potential milestone payments reaching up to $1.8 billion, alongside tiered royalties [3]. Drug Development and Mechanism - UBT251 is in early development for treating obesity and Type 2 diabetes, utilizing a three-pronged approach by targeting GLP-1, GIP, and glucagon, which may enhance weight loss and health benefits compared to existing treatments [4][5][6]. Competitive Landscape - Eli Lilly's retatrutide, a competitor to UBT251, has shown significant weight loss results in trials, with patients losing an average of 24.2% of their body weight [7][8]. - Eli Lilly's drug could potentially reach the market before Novo Nordisk's UBT251, as it is further along in clinical trials [9]. Clinical Trial Results - Initial phase one trial results for UBT251 indicated a 15.1% average weight loss after 12 weeks, compared to 1.5% for the placebo group, suggesting promising efficacy [10][11]. - The safety profile of UBT251 aligns with other gut-hormone therapies, with mild to moderate gastrointestinal side effects being the most common [10]. Strategic Positioning - The acquisition of UBT251 may reflect Novo Nordisk's strategy to reposition itself following disappointing late-stage data on its other obesity drug, CagriSema [11].