COPENHAGEN (Reuters) -Novo Nordisk has struck a collaboration and licensing deal with U.S. biotech Septerna to develop oral small molecule medicines for obesity, type 2 diabetes and other cardio-metabolic diseases that could be worth up to $2.2 billion for Septerna, they said on Wednesday. Novo, maker of the wildly popular Wegovy weight-loss drug, has sought to further strengthen its position in the potential $150 billion obesity market through the development of next-generation drugs, acquisitions and partnerships. Investors have been concerned that Novo's first-to-market drug is losing its lead to Eli Lilly, whose U.S. prescriptions for its Zepbound obesity shot have surpassed Wegovy since mid-March. "Novo Nordisk has a rich history of innovation in obesity and diabetes," the Danish company's Chief Scientific Officer Marcus Schindler said in a statement. "We are building on our scientific leadership in this space and developing a broad pipeline across various targets and modalities, including peptides and small molecules," he said. The new partnership includes more than $200 million in upfront and near-term payments for Septerna, the companies said. California-based Septerna is developing therapies targeting G-protein-coupled receptors (GPCR), a class of proteins that serve as a main conduit for chemicals to get past a cell's membrane and be taken up by a cell. GPCR can influence broad physiological processes such as metabolism, secretion, cell growth, and immune responses. The two companies aim to commence four development programmes for potential small molecule therapies directed at select GPCR targets. The collaboration is the second significant pharma deal in obesity in as many months. In March, Roche said it would pay up to $5.3 billion to co-develop and co-commercialise Zealand Pharma's obesity drug candidate. Separately, U.S. regulators this month accepted Novo's submission for an oral version of Wegovy which, if approved, would become the first oral therapy for obesity from the GLP-1 drug class to which both it and Zepbound belong. Goldman Sachs owns a 3.3% stake in Septerna, while healthcare-focused venture capital firm Third Rock Ventures holds 23.7%, according to LSEG data. (Reporting by Stine JacobsenEditing by Mark Potter)
Novo Nordisk strikes $2.2 billion deal with Septerna to develop new obesity treatments
You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more
Start Your Free Trial Now!Download Free Report – Explore 3 Stock Ideas & Industry Insights
Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.
All investments involve risk—consider independent advice before making any investment decisions.
View 3 Research ReportsThis information, including any data, is sourced from Unicorn Data Services SAS, trading as EOD Historical Data (“EODHD”) on ‘as is’ basis, using their API. The information and data provided on this page, as well as via the API, are not guaranteed to be real-time or accurate. In some cases, the data may include analyst ratings or recommendations sourced through the EODHD API, which are intended solely for general informational purposes.
This information does not consider your personal objectives, financial situation, or needs. Kalkine does not assume any responsibility for any trading losses you might incur as a result of using this information, data, or any analyst rating or recommendation provided. Kalkine will not accept any liability for any loss or damage resulting from reliance on the information, including but not limited to data, quotes, charts, analyst ratings, recommendations, and buy/sell signals sourced via the API.
Please be fully informed about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment. Kalkine does not provide any warranties regarding the information on this page, including, without limitation, warranties of merchantability or fitness for a particular purpose or use.
Please wait processing your request...