$1B Deal: Novo Nordisk Inks Exclusive License for Lexicon’s Preclinical ACSL5 Inhibitor LX9851 to Expand Obesity Pipeline

On March 28, Lexicon Pharmaceuticals (Nasdaq:LXRX) announced that it had entered into an exclusive license agreement with Novo Nordisk for LX9851, an oral non-enteric insulin development candidate for obesity and related metabolic disorders. Under the terms of the agreement, Novo Nordisk obtainedGlobal Exclusive License for the Development, Manufacturing, and Commercialization of LX9851 for All Indications. Lexicon will be responsible for completing the agreed-upon Investigational New Drug (IND) application-enabling activities for LX9851. Novo Nordisk will be responsible for the IND filing of LX9851, as well as all further development, manufacturing, and commercialization.Industrialization. ($2 Billion! Novo Nordisk Acquires Federal Pharmaceutical's GLP-1/GIP/GCG Agonist）

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

LX9851, discovered and developed by Lexicon, is an effective and selective oral small-molecule inhibitor of acyl-CoA synthetase 5 (ACSL5). ACSL5 plays a key role in metabolic pathways that regulate fat accumulation and energy balance. Additionally, LX9851 may activate the ileal brake mechanism by delaying gastric emptying and suppressing appetite, thereby increasing satiety. Preclinical in vivo efficacy data presented at ObesityWeek 2024 showed that compared to semaglutide alone, the combination of LX9851 with semaglutide significantly reduced body weight, food intake, and fat mass. Moreover, LX9851 mitigated weight regain and had a positive effect on hepatic steatosis after discontinuation of treatment.

LX9851 is an oral small molecule candidate drug for the treatment of obesity and related cardiometabolic disorders. Lexicon is studying the pharmacology of LX9851 as a standalone therapy and in combination with GLP-1 agonists, such as semaglutide. Lexicon scientists have identified the function of LX9851's target, ACSL5. Their findings show that knockout mice lacking the target enzyme exhibited favorable phenotypes across multiple metabolic syndrome indicators in preclinical models, including resistance to diet-induced obesity and improved body composition.

Mike Exton, Ph.D., Chief Executive Officer and Director of Lexicon Pharmaceuticals, Inc., stated:"We are pleased that Novo Nordisk, the global leader in diabetes care and obesity management, has recognized the potential of LX9851. This arrangement decisively strengthens our financial position, providing us with the option to further invest in and accelerate our R&D portfolio."

Jacob Sten-Petersen, Senior Vice President of Novo Nordisk's Diabetes, Obesity, and MASH Treatment Fields, stated:"Novo Nordisk is committed to meeting the diverse needs of patients with obesity and other metabolic diseases, and establishing a differentiated pipeline of drug candidates in this field. We are pleased to sign this agreement with Lexicon Pharmaceuticals, as it will enable us to further explore a new biology and potential therapeutic paradigm. We look forward to building on the development work Lexicon has already completed with LX9851."