Lexicon Secures $1 Billion Deal with Novo Nordisk for Obesity Candidate
Lexicon Pharmaceuticals announced an exclusive worldwide licensing agreement with Novo Nordisk for LX9851, a first-in-class oral non-incretin therapy in development for obesity and associated metabolic disorders.
Under the terms of the deal, Novo Nordisk secures global rights to develop, manufacture, and commercialize LX9851 across all indications. Lexicon will 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. Lexicon is also entitled to tiered royalties on net sales of LX9851.
Deal Structure and Development Responsibilities
Lexicon will complete agreed-upon Investigational New Drug (IND) application-enabling activities for LX9851, while Novo Nordisk assumes responsibility for filing the IND and leading all subsequent development, manufacturing, and commercialization efforts. The agreement positions Lexicon to earn royalties on future sales if LX9851 reaches the market.
LX9851’s Dual Mechanism Targets Fat Metabolism and Appetite Regulation
LX9851, discovered and developed by Lexicon, is a potent oral small molecule inhibitor of Acyl-CoA Synthetase 5 (ACSL5), an enzyme critical in fat accumulation and energy balance. Preclinical data presented at Obesity Week 2024 demonstrated that LX9851, when combined with Novo Nordisk’s GLP-1 agonist semaglutide, significantly reduced weight, food intake, and fat mass compared to semaglutide alone. Additionally, LX9851 mitigated weight regain and improved liver steatosis in models after semaglutide discontinuation. The drug also activates the ileal brake mechanism, delaying gastric emptying and suppressing appetite to enhance satiety.
Executive Quotes Highlight Strategic Alignment
Mike Exton, Ph.D., Chief Executive Officer and Director of Lexicon, said:
“We are thrilled that Novo Nordisk, a global leader in diabetes care and obesity management, has recognized the potential of LX9851. This arrangement decisively strengthens our financial position, providing optionality as we further invest and accelerate our R&D portfolio.”
Jacob Sten Petersen, Senior Vice President of Diabetes, Obesity, and MASH Therapeutics at Novo Nordisk, added:
“Novo Nordisk is committed to serving the diverse needs of people living with obesity and other metabolic diseases and to build a pipeline of differentiated drug candidates in this space. We are pleased to enter this agreement with Lexicon as it will allow us to explore a novel biology and potential treatment paradigm further, and we look forward to building on the great work Lexicon has already done with the development of LX9851.”
Preclinical Promise and Future Pathways
Lexicon’s research identified ACSL5 as a therapeutic target after knockout mice lacking the enzyme exhibited resistance to diet-induced obesity and improved body composition in preclinical models. LX9851, designed to inhibit ACSL5, is being studied as a standalone therapy and in combination with GLP-1 agonists like semaglutide. Its oral formulation and non-incretin mechanism differentiate it from current injectable obesity treatments.
Market Potential and Next Steps
With obesity affecting over 650 million adults globally, LX9851’s dual action on fat metabolism and appetite regulation could address significant unmet needs. Lexicon will focus on completing IND-enabling studies, while Novo Nordisk plans to advance the candidate into clinical trials. The Phase 1 program is expected to evaluate LX9851’s safety, pharmacokinetics, and efficacy in humans.
About LX9851
LX9851 is an orally delivered small molecule drug candidate targeting obesity and cardiometabolic disorders. Its development stems from Lexicon’s Genome5000™ platform, which analyzed nearly 5,000 genes to identify high-value therapeutic targets.
About Lexicon Pharmaceuticals
Lexicon leverages functional genomics to pioneer medicines for diseases with limited treatment options. Its pipeline includes candidates in cardiology, neuropathic pain, and metabolic disorders.
About Novo Nordisk
A global healthcare leader since 1923, Novo Nordisk specializes in diabetes and obesity therapies, including blockbusters like Ozempic® (semaglutide) and Wegovy® (semaglutide for obesity).
For further details, visit Lexicon Pharmaceuticals and Novo Nordisk.
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