Lexicon Earns $10M as Novo Nordisk Begins Phase 1 Trial
On March 23, 2026, Novo Nordisk initiated a Phase 1 clinical trial for LX9851, an oral obesity drug candidate it licensed from Lexicon Pharmaceuticals (Nasdaq: LXRX). The start of the study immediately triggered a $10 million milestone payment to Lexicon, marking the second such payment the company has received from the collaboration in 2026. In February 2026, Lexicon's cash position was strengthened by over $100 million from a capital raise and a prior Novo Nordisk payment.
The trial will evaluate the safety, tolerability, and pharmacokinetics of the drug in 96 participants with overweight or obesity, with completion expected in the first quarter of 2027. Under the agreement signed in March 2025, Lexicon is eligible for up to $1 billion in total upfront and milestone payments, plus tiered royalties on future net sales, making the partnership a critical component of its long-term strategy.
Novo Diversifies Beyond GLP-1s After Alzheimer's Setback
The LX9851 program represents a crucial strategic diversification for Novo Nordisk. The drug is a first-in-class, oral, non-incretin inhibitor, operating through a different biological mechanism than Novo's blockbuster GLP-1 drugs like semaglutide (marketed as Ozempic and Wegovy). This pivot comes just after Novo Nordisk presented full data on March 19, 2026, confirming the high-profile failure of oral semaglutide to show any benefit in two large-scale Alzheimer's disease trials, EVOKE and EVOKE+.
While GLP-1 therapies dominate the metabolic disease market, the Alzheimer's failure underscores the risk of over-reliance on a single drug class. By advancing LX9851, an inhibitor of Acyl CoA Synthetase 5 (ACSL5), Novo Nordisk is developing novel approaches to obesity treatment that could complement its existing portfolio. Preclinical data has already shown that LX9851, when combined with semaglutide, significantly improved weight reduction compared to semaglutide alone.
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.
— Jacob Sten Petersen, Senior Vice President and Head of Global Research at Novo Nordisk.
Edgen Stock·Mar 23 2026, 13:15
