Novo Nordisk Lands Lexicon Pharma Obesity Drugs Have Potential to Pair with GLP-1
Novo Nordisk has been looking for a differentiated obesity drug that can complement its large tablets of GLP-1 agonist Wegovy. It found a competitor with preclinical data, suggesting that it can lead to greater weight loss as part of the drug combination and prevent weight recovery after treatment with GLP-1 drug.
The Danish pharmaceutical giant announced Friday that the Danish pharmaceutical giant is licenseing the global rights of LX9851, a drug discovered and developed by Lexicon Pharmaceuticals. LX9851 is an oral small molecule that blocks acyl-COA synthetase 5 (ACSL5), an enzyme that plays a key role in the metabolic pathways that regulate fat accumulation and energy balance. According to the dictionary, the molecule can also activate ileal braking, a feedback mechanism that slows down the movement of food through the gastrointestinal system and promotes fullness.
The Texas-based Dictionary has been studying the LX9851 as a standalone therapy and is used in combination with GLP-1 agonists such as Semaglutide, a major ingredient in Novo Nordisk Wegovy. At the Obesity Week 2024 conference last November, Lexicon combined with Semaglutide to use preclinical results from the LX9851 test. The dictionary says that this drug pairing leads to significant reductions in weight, food intake and fat compared to the half-rupee alone. Further results show that after the dose of the dictionary drug was stopped, the dictionary drug lost weight and had a positive effect on the liver.
Under the terms of the licensing agreement, Lexicon remains responsible for completing preclinical studies that can support the application for the Research New Drug (IND) of ACLS5 inhibitors. Novo Nordisk will be responsible for IND application for the drug and for further development, manufacturing and commercialization.
The deal gives all signs of Pharma giant global LX9851 rights. Novo Nordisk has promised to pay up to $75 million in expected and near-term milestone payments. Achieving additional milestones could bring financial spending to $1 billion. If the research produces commercial products, Lexicon will receive royalties from the sale of Novo Nordisk.
For Leerink Partners, the deal validates Lexicon’s obesity platform while providing financial flexibility to biotechnology to focus on other cardiac metabolic drugs. Analyst Roanna Ruiz said in a note sent to investors that the ACLS5 inhibition provided by LX9851 is supplemented with GLP-1 agonist, and preclinical results show that it increases weight loss by about 20% compared to Semaglutide alone. Ruiz added that the molecule's ability to prevent weight recovery after cessation of GLP-1 is particularly convincing, as weight recovery remains a major obstacle to obesity management.
“The big picture is that this deal is in line with Novo's strategy to maintain dominance in the obesity field by adding complementary mechanisms that pair with their GLP-1 franchises, and we look forward to more updates in future collaboration,” Ruiz said.
The LX9851 license agreement is the latest in a series of deals reached by Novo Nordisk to expand its metabolic drug pipeline. Earlier this week, the pharmaceutical giant agreed to pay United Biotechnology $200 million to pay for the rights to early-stage clinical peptide drugs, which aims to activate three goals to promote weight loss.
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