Novo Nordisk and Ascendis ink $285m deal for monthly GLP-1RA

Novo Nordisk and Ascendis Pharma have entered into a collaborative agreement to develop therapies for metabolic and cardiovascular diseases. A significant focus of this partnership is the development of a once-monthly glucagon-like peptide receptor agonist (GLP-1RA) for treating obesity and type 2 diabetes. This new medication aims to improve patient compliance by reducing the frequency of drug administration compared to current options, which are typically administered weekly.

Under the agreement, Novo Nordisk will have exclusive rights to expand the use of any developed metabolic disease products into other therapeutic areas. Novo Nordisk has an established reputation with its GLP-1RA drug semaglutide, marketed as Wegovy for obesity and Ozempic for type 2 diabetes. Predictions indicate that sales for semaglutide could reach $42.85 billion by 2030. However, Novo Nordisk faces competition from Eli Lilly, whose drug tirzepatide, marketed as Mounjaro for type 2 diabetes and Zepbound for obesity, is estimated to generate $57.65 billion in sales within the same timeframe.

The partnership agreement, signed on November 4, grants Novo Nordisk an exclusive global license to Ascendis' TransCon technology. This technology facilitates the transient conjugation of an inactive carrier to a parent drug, allowing for controlled release either systemically or locally. Novo Nordisk will use this technology to develop, manufacture, and commercialize the new therapies. Ascendis will receive up to $285 million in upfront payments from Novo Nordisk, with additional potential payments of up to $77.5 million for each asset based on developmental and regulatory milestones. Moreover, Ascendis may also earn sales-based milestone payments and tiered royalties on net sales. Regulatory approvals for the agreement are anticipated by the end of 2024.

Ascendis recently received approval from the US Food and Drug Administration (FDA) for its TransCon-based drug for hypoparathyroidism, Yorpvipath (palopegteriparatide), in August 2024. Additionally, in October, Ascendis submitted a supplemental biologics license application (sBLA) for TransCon hGH, marketed as Skytrofa, aimed at treating growth hormone deficiency.

Following the announcement of the deal, Ascendis' stock value increased by 1.5% as the markets opened on November 4, contributing to the company's market capitalization of $7.5 billion. According to projections, Ascendis' global revenue is expected to rise from $508 million in 2024 to an annual $4.2 billion by 2030.

Jan Mikkelesen, the CEO of Ascendis, commented on the agreement, stating that it aligns with the company's Vision 2030, which aims to create value in large therapeutic areas outside of endocrinology rare diseases through collaborations with established global leaders. This deal builds on Ascendis' previous collaboration with Teijin Limited in 2023, which involved licensing TransCon technology for endocrinological rare diseases. Additionally, Ascendis has founded Eyconis to apply TransCon technology to ophthalmological indications.

Brian Vandahl, Senior Vice President of global research technologies at Novo Nordisk, emphasized the importance of reducing the frequency of therapy delivery. He highlighted the potential of the TransCon platform to achieve this goal and improve patient outcomes.

In summary, the collaboration between Novo Nordisk and Ascendis Pharma represents a significant step forward in the development of advanced therapies for metabolic and cardiovascular diseases. This partnership combines Novo Nordisk's expertise in GLP-1RA drugs with Ascendis' innovative TransCon technology, aiming to create more convenient and effective treatment options for patients worldwide.