Lexicon Pharmaceuticals (NASDAQ: LXRX) has signed an exclusive worldwide licensing agreement with Novo Nordisk for its investigational obesity drug candidate, LX9851—securing a deal that could bring in up to $1 billion in milestone-based payments.
Under the terms of the agreement, Novo Nordisk acquires full rights to develop, manufacture, and commercialize LX9851 across all indications. In return, Lexicon will receive up to $75 million in upfront and near-term milestone payments, and remains eligible for an additional $925 million through development, regulatory, and commercial milestones.
- Total potential deal value reaches $1 billion, with $75 million allocated for immediate and near-term payments.
- Lexicon is also entitled to tiered royalties on net product sales if LX9851 reaches the market.
Lexicon will complete remaining IND-enabling activities, after which Novo Nordisk will take over the IND filing and all subsequent development and commercialization responsibilities.
LX9851 is a first-in-class, orally administered small molecule inhibitor of Acyl-CoA Synthetase 5 (ACSL5)—an enzyme tied to fat metabolism and energy regulation. Discovered in-house by Lexicon, the candidate is being evaluated for its potential to support weight loss and improve metabolic health. Notably, LX9851 may also trigger the “ileal brake” mechanism, slowing gastric emptying and promoting satiety.
- Preclinical data presented at Obesity Week 2024 demonstrated LX9851’s potential when used with semaglutide, showing superior results in reducing body weight, food intake, and fat mass compared to semaglutide alone.
- Additionally, LX9851 helped counteract weight regain and improved liver health when introduced after discontinuation of semaglutide.
Lexicon’s drug discovery platform, Genome5000™, was pivotal in identifying ACSL5 as a metabolic target. Knockout mouse models lacking ACSL5 showed resistance to diet-induced obesity and enhanced body composition—findings that laid the groundwork for LX9851’s development.
Novo Nordisk, an established leader in metabolic disease treatments, will now advance LX9851 within its growing obesity pipeline, exploring its potential as both a standalone therapy and a combination agent.
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