Novo Nordisk Advances Oral Obesity Drug LX9851 into Phase 1 Trial

Novo Nordisk has initiated a Phase 1 clinical trial for LX9851, an oral drug candidate for the treatment of obesity and associated metabolic disorders. The drug was licensed from Lexicon Pharmaceuticals in March 2025 .

What is LX9851?

LX9851 is a first-in-class, oral non-incretin drug being developed for obesity treatment . The Phase 1 study will evaluate the safety and tolerability of the drug, as well as how the body processes it and its effects compared to a placebo. The trial involves 96 participants who are overweight or obese .

Financial Implications for Lexicon Pharmaceuticals

Lexicon Pharmaceuticals has already received $75 million in upfront and near-term milestone payments from Novo Nordisk as part of the licensing agreement . The company received an additional $10 million milestone payment in 2026 after initial dosing began in the Phase 1 study. A further $10 million milestone payment is possible later in 2026. Lexicon is eligible to receive up to $1 billion in total payments, including potential development, regulatory, and commercial milestone payments, as well as tiered royalties on net sales of LX9851 .

Novo Nordisk Shareholder Concerns

Recently, Norway’s sovereign wealth fund abstained from voting to re-elect Novo Nordisk Chairman Lars Rebien Sorensen, citing concerns about shareholder protection . The fund, which holds a 1.6 percent stake in Novo Nordisk, previously abstained from voting on Sorensen’s appointment in November. The decision is based on guidelines designed to promote long-term economic viability and reduce financial risks related to corporate governance and environmental/social practices .

Looking Ahead

The completion of the Phase 1 study is expected in the first quarter of 2027 . The development of LX9851 represents a significant step in Novo Nordisk’s efforts to expand its portfolio of obesity treatments.