NVO Eyes Global Expansion of Diabetes Drug After Strong Phase II Data

Novo Nordisk NVO and its partner, The United Laboratories International Holdings Limited ("TUL"), jointly announced top-line data from a phase II study in China, evaluating UBT251, a novel triple agonist targeting the GLP-1, GIP and glucagon (triple G) receptors in patients with type II diabetes (T2D).

UBT251 is being co-developed under a collaboration agreement signed in March 2025 between TUL’s wholly-owned subsidiary, The United Bio-Technology (Hengqin) Co., Ltd. and Novo Nordisk. Under the terms of the agreement, TUL’s subsidiary will oversee development activities across mainland China, Hong Kong, Macau and Taiwan, while Novo Nordisk will lead development efforts in all other global markets.

Year to date, shares of Novo Nordisk have declined 27.5% compared with the industry’s 4.9% decrease.

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Key Details of Phase II Study on UBT251

The phase II study, conducted by The United Bio-Technology (Hengqin) Co., Ltd., evaluated the safety and efficacy of once-weekly UBT251 at 2 mg, 4 mg and 6 mg doses compared with placebo and semaglutide 1 mg in Chinese patients with T2D.

Patients treated with UBT251 achieved a maximum average reduction of 2.16% from a baseline mean glycated haemoglobin (HbA1c) of 8.12% at 24 weeks, compared with 1.77% reduction in the semaglutide 1 mg group and 0.66% with placebo. The study met its primary endpoint.

UBT251 delivered a significant weight loss of up to 9.8% of their initial body weight compared with 4.8% and 1.4% for semaglutide and placebo, respectively.

The therapy also demonstrated favorable improvements across key secondary endpoints, including waist circumference, blood pressure and lipid parameters. Importantly, the candidate exhibited a safety and tolerability profile consistent with the established class of triple agonists.

Based on the encouraging phase II data, Novo Nordisk intends to initiate a global phase II study in T2D in the second half of 2026. Meanwhile, an ongoing phase Ib/IIa study in overweight or obese individuals continues to evaluate safety and dosing, with top-line data expected in 2027.

United Biotechnology is planning to initiate two phase III studies in Chinese patients with T2D.

NVO’s Zacks Rank & Stocks to Consider

Novo Nordisk currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Catalyst Pharmaceuticals CPRX,ADMA Biologics ADMA and Inovio Pharmaceuticals INO. While CPRX sports a Zacks Rank #1 (Strong Buy), ADMA and INO carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 EPS have risen from $2.55 to $2.87. CPRX shares have gained 20.5% over the past six months.

Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.

Over the past 60 days, estimates for ADMA Biologics’ 2026 earnings per share (EPS) have increased from 85 cents to 96 cents. ADMA shares have lost 26% over the past six months.

ADMA Biologics’ earnings beat estimates in one of the trailing three quarters, matched once and missed on the remaining occasion, with the average negative surprise being 1.79%.

Over the past 60 days, estimates for Inovio Pharmaceuticals’ 2026 loss per share have narrowed from $1.26 to $1.12. INO shares have plunged 35.4% over the past six months.

Inovio Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 57.94%.

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