Novo Nordisk Advances Obesity Pipeline With Early-Stage Oral Drug Trial From Lexicon Deal

• The start of the trial triggered a second $10 million milestone payment to Lexicon.
• The Phase 1 study will evaluate safety and dosing in 96 overweight or obese participants.
• The trial is expected to be completed in early 2027, Novo said.

Novo Nordisk (NVO) is pushing deeper into next-gen obesity treatments. The drugmaker announced on Monday that it has initiated a Phase 1 study of LX9851, Lexicon Pharmaceuticals’ oral non-incretin drug candidate for obesity and related metabolic disorders. 

This adds to Novo’s obesity treatment pipeline, which also features the semaglutide injection, famously known as Wegovy. 

At the time of writing, NVO shares climbed 1%, while Lexicon Pharmaceuticals’ (LXRX) stock traded over 5% higher.

Novo’s $10 Million Milestone Payment To Lexicon

The start of the trial triggered a second $10 million milestone payment to Lexicon under their licensing deal signed in March 2025. The agreement gives Novo Nordisk exclusive global rights to develop and commercialize the drug, with Lexicon eligible to receive up to $1 billion in total milestone payments, as well as royalties on future sales.

The Phase 1 study will evaluate safety and dosing in 96 overweight or obese participants. The trial is expected to be completed in early 2027.

“LX9851 offers a novel approach to the treatment of obesity and related metabolic conditions. It is an important addition to our pipeline of potential treatment options as we look to meet the diverse needs of people living with obesity, diabetes and their associated comorbidities,” said Jacob Sten Petersen, Senior Vice President and Head of Global Research at Novo Nordisk. 

Lilly’s Experimental Diabetes Pill Outperforms Oral Semaglutide 

This comes days after Eli Lilly and Company (LLY) announced that its experimental diabetes pill, Orforglipron, outperformed oral semaglutide in a large Phase 3 study, delivering stronger reductions in blood sugar and greater weight loss over 52 weeks. Lilly has filed the drug for approval in more than 40 countries and plans to submit it in the U.S. later this year.

Drug developers are racing to tap the booming obesity market, currently led by injectables like Wegovy and Eli Lilly’s Zepbound.

How Did Stocktwits Users React?

Retail sentiment for NVO and LXRX remained in the ‘bearish’ zone over the past 24 hours.

One user called LXRX’s price point “attractive.”

Another user was skeptical about Novo’s forecast.

Year-to-date, NVO stock fell 29% while LXRX shares have gained more than 40%.

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