Search Here

Novo Nordisk has entered into a major collaboration with U.S.-based biotech company Septerna to develop oral medications for obesity, type 2 diabetes, and other cardio-metabolic conditions.

The agreement, valued at up to $2.2 billion, marks a significant move by Novo Nordisk to strengthen its position in the $150 billion obesity market.

The deal will see Septerna receive over $200 million in upfront and near-term milestone payments, with the potential for additional payments tied to research, development, and commercialization milestones.

The agreement also includes tiered royalties based on global net sales of any marketed products. Novo Nordisk, known for its popular weight-loss drug Wegovy, will cover all research and development costs.

Septerna, based in California, specializes in targeting G-protein-coupled receptors (GPCRs)—proteins that play a key role in regulating essential physiological processes such as metabolism, immune response, and cell growth, Reuters said.

Both Novo Nordisk's Wegovy and Eli Lilly's Zepbound, two blockbuster obesity drugs currently on the market, target GPCRs to help manage weight. However, GPCRs are vast, with many still unexplored for therapeutic purposes.

The collaboration will focus on four initial development programs targeting specific GPCRs, including GLP-1, GIP, and glucagon receptors.

These are crucial targets involved in metabolism and appetite regulation. By developing oral small-molecule drugs, the partnership aims to offer a more convenient alternative to injectable treatments like Wegovy and Zepbound.

Novo Nordisk Aims to Transform Obesity Treatment with Oral Medications

This collaboration is a strategic response to competition in the growing obesity treatment market. Since mid-March, Eli Lilly's Zepbound has outpaced Wegovy in US prescriptions, prompting Novo Nordisk to seek new solutions.

"Novo Nordisk has a rich history of innovation in obesity and diabetes," said Marcus Schindler, Novo Nordisk's Chief Scientific Officer.

"We are building on our scientific leadership in this space and developing a broad pipeline across various targets and modalities."

The new oral treatments have the potential to revolutionize how patients manage obesity, offering more flexibility compared to injectable therapies that require refrigeration and careful administration.

As both Novo Nordisk and Eli Lilly work to develop pill versions of their drugs, this partnership with Septerna could give Novo Nordisk an edge in providing more accessible treatment options.

According to MorningStar, following the announcement, Septerna's stock surged by 69% in premarket trading, reflecting investor optimism about the collaboration.

Meanwhile, Novo Nordisk's stock saw a slight increase of 1.2% in European markets. This deal is seen as a significant step forward in the pursuit of more effective and accessible treatments for obesity and other metabolic diseases.

As of now, Novo Nordisk is also awaiting approval for an oral version of Wegovy, which, if authorized, will become the first oral obesity treatment in its class.

Tags

Novo Nordisk