Novo and Ascendis Partner to Develop Long-Acting GLP-1 and Metabolic Drugs

Novo Nordisk is expanding its efforts in the field of obesity and metabolic diseases by partnering with Ascendis Pharma. The collaboration aims to leverage Ascendis' delivery technology to develop a long-acting GLP-1 drug, alongside other products targeting diabetes and cardiovascular conditions. According to the agreement, Novo Nordisk might pay Ascendis up to $285 million in immediate and milestone-based payments, contingent upon the GLP-1 drug's progress towards regulatory approval. Additionally, Ascendis could earn up to $77.5 million for each additional drug developed under this partnership.

Ascendis Pharma has previously received approval from the Food and Drug Administration (FDA) for two of its products that utilize its extended-release technology, both targeting rare conditions. This collaboration with Novo Nordisk will allow Ascendis to venture into therapeutic areas with significant commercial potential.

Ascendis asserts that its drug delivery technology can be customized to either minimize the frequency of doses or to deliver therapeutic molecules directly to affected tissues. Its two FDA-approved products include Skytrofa, a weekly injection for growth hormone deficiency, and Yorvipath, a daily injection for hypoparathyroidism.

In the realms of obesity and diabetes, GLP-1 drugs, such as Novo Nordisk's Wegovy and Ozempic, currently require weekly injections. Novo Nordisk posits that longer-acting formulations could improve patient adherence to their treatment regimens. Recent research released in July indicated that over 50% of patients who begin GLP-1 treatment discontinue it within six months.

Brian Vandahl, Novo Nordisk's Senior Vice President of Global Research Technologies, expressed optimism about the collaboration. He stated, "We look forward to working with Ascendis to explore the potential of the TransCon technology platform to reduce the dosing frequency of GLP-1 receptor agonists and other treatments for cardiometabolic diseases."

The primary product emerging from this partnership will grant Novo Nordisk an exclusive worldwide license to Ascendis' technology for a once-monthly GLP-1 drug. Ascendis will oversee the early stages of drug development, with Novo Nordisk providing financial support for this phase and assuming responsibility for clinical, regulatory, and commercial development.

The financial proceeds from this collaboration will bolster Ascendis' operations. Recently, Ascendis has secured multiple cash infusions. In September, Ascendis sold 3% of Yorvipath royalties to Royalty Pharma for $150 million. Later that month, the company raised an additional $281 million through a share sale following the approval of Yorvipath.

Despite having two FDA-approved products, only one has been fully launched to date. Ascendis reported a loss of 240 million euros (approximately $262 million) in the first half of the year, with cash reserves amounting to 259 million euros as of June 30.