Novo Nordisk Enters License Agreement with Lexicon Pharmaceuticals for Oral Obesity Drug in Deal Valued at Up to $1 Billion

In The News
March 31, 2025

Ropes & Gray advised Novo Nordisk in an exclusive license agreement with Lexicon Pharmaceuticals for LX9851, a first-in-class oral drug candidate for obesity and related metabolic disorders. The deal was announced on March 28.

Under the agreement, Novo Nordisk obtains an exclusive worldwide license to develop, manufacture and commercialize LX9851 in all indications. Lexicon will be responsible for completing agreed upon Investigational New Drug (IND) application activities. Novo Nordisk will be responsible for filing the IND, all further development, manufacturing and commercialization of LX9851.

Lexicon is eligible to receive upfront and near-term milestone payments of up to $75 million. Lexicon will be eligible to receive $1 billion in upfront and potential development, regulatory and sales milestone payments as well as tiered royalties on net sales of LX9851.

The Ropes & Gray team included life sciences licensing partner Hannah England and life sciences licensing associates Mallory Ursul and Ian Nilsen.