Novo Nordisk Secures $2 Billion License Deal with United Laboratories
Deal News | Mar 25, 2025 | Ropes & Gray
Novo Nordisk, with legal counsel from Ropes & Gray, has entered into an exclusive license agreement with China-based United Laboratories International Holdings Limited and its subsidiary United Bio-Technology (Hengqin) Co. Ltd. The deal, valued at up to $2 billion, involves UBT251, a drug in clinical development for Type 2 diabetes, obesity, and other diseases. Under the agreement, Novo Nordisk will gain exclusive rights to develop, manufacture, and commercialize UBT251 worldwide, excluding the Chinese mainland, Hong Kong, Macau, and Taiwan. United Bio-Technology will maintain these regional rights and benefit from a $200 million upfront payment, potential milestone payments reaching $1.8 billion, and tiered royalties on net sales outside its territories.
Sectors
- Pharmaceuticals
- Legal Services
Geography
- China – United Laboratories International Holdings Limited is based in China, and retains certain regional rights to the drug UBT251.
- Denmark – Novo Nordisk is a global pharmaceutical company headquartered in Denmark.
Industry
- Pharmaceuticals – This sector involves the development, production, and marketing of drugs. The article discusses a licensing agreement for a diabetes and obesity drug.
- Legal Services – Ropes & Gray provided legal advisory services in the transaction between Novo Nordisk and United Laboratories.
Financials
- $2 billion – Total potential value of the license agreement between Novo Nordisk and United Laboratories.
- $200 million – The upfront payment United Biotechnology is eligible to receive.
- $1.8 billion – Potential milestone payments that may be received by United Biotechnology.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Novo Nordisk | Bidding Company | Company | A Danish healthcare company engaged in the development, manufacturing, and marketing of pharmaceutical products and services. |
| United Laboratories International Holdings Limited | Selling Company | Company | A Chinese company involved in the development and manufacturing of biopharmaceutical products. |
| United Bio-Technology (Hengqin) Co. Ltd. | Other Company | Company | A wholly-owned subsidiary of United Laboratories involved in biotechnology. |
| Ropes & Gray | Legal Advisor | Company | An international law firm with a strong focus on complex transactions and advisory services. |