iX Biopharma Ltd. announced the addition of a new drug candidate, iXB 401, to its innovative pharmaceutical development pipeline. iXB 401 is a novel semaglutide wafer delivered sublingually with the Company's WaferlogiX drug delivery technology platform. The Company is moving ahead with preclinical work including formulation studies.

Developed by Novo Nordisk, semaglutide, a GLP-1 receptor agonist, has emerged as a leading therapy for diabetes and obesity. It is approved for type 2 diabetes management under the brand names Ozempic (injectable) and Rybelsus (oral tablet), and for weight loss under the brand name Wegovy (injectable). Ozempic and Rybelsus are approved in the People's Republic of China ("PRC").

Approximately USD 24 billion or 71% of Novo Nordisk's USD 33.7 billion revenue in 2023 was derived from sales of GLP-1 drugs. Novo Nordisk's semaglutide patents in the PRC are being challenged and are expected to expire in 2026, paving the way for generic drugs. The Company is seizing the opportunity to introduce a more attractive semaglutide product to the market by repurposing it into a sublingual wafer using the WaferlogiX drug delivered technology.

The drug repurposing approach offers a shorter development timeline and reduced costs compared to traditional drug development with a new molecule. iXB 401 is designed to offer several potential advantages: Enhanced Absorption: Its proprietary formulation facilitates direct systemic drug absorption through three pathways: sublingual (via both lymphatic and vascular routes), gastric, and the small intestine. Improved Bioavailability: Compared to oral semaglutide, which has poor oral bioavailability and high variability, iXB 401 has potentially better bioavailability and lower variability.

Patient Benefits: These enhancements hold the potential to improve efficacy, side effect profile, patient tolerability, and ultimately, compliance. Due to poor oral bioavailability, most current GLP-1 receptor agonists are injectables. iXB 401 sublingual semaglutide wafers offer a more convenient and potentially better tolerated option compared to existing GLP-1 receptor agonIST drugs.

With better patient compliance, iXB 401 would be well positioned to capture a significant share of this vast and growing market. The Company intends to license iXB 401 commercialisation rights to a suitable partner in the PRC. Market analysts estimate the global market size for GLP-1 drugs to be valued at over USD 100 billion, with up to half of the American population being potential patients for diabetes and weight loss drugs.

Notably, Mounjaro, another GLP-1/GIP receptor agonist drug by Eli Lilly, generated USD 5.16 billion in sales in 2023, surpassing analysts' estimates. The PRC, like the United States and other western countries, has seen surging demand for weight loss medications. The Wall Street Journal reported that there could be as many as 200 million individuals who are dealing with obesity in China.