Novo Nordisk Strikes $285M GLP-1 Deal With Ascendis

Novo Nordisk has entered into a significant $285 million partnership with Ascendis Pharma to develop innovative GLP-1 therapeutics aimed at treating metabolic and cardiovascular diseases. This collaboration allows Novo Nordisk to harness Ascendis' TransCon technology platform to create GLP-1 candidates that require less frequent dosing. The $285 million comprises an upfront payment and milestone fees relating to the development and regulatory approval of the lead program, along with potential royalties based on sales. Additionally, Ascendis may receive up to $77.5 million in milestones and sales-related royalties for each subsequent program.

The centerpiece of this deal is a once-monthly GLP-1 receptor agonist, which Novo Nordisk will initially target for obesity and type 2 diabetes treatment. Novo Nordisk holds the exclusive rights to explore further applications for this medication. Early development efforts for the product candidates will be led by Ascendis, with Novo Nordisk taking on the financial responsibilities. Novo Nordisk will also oversee the clinical development and eventual commercialization stages.

Brian Vandahl, Senior Vice President of Global Research Technologies at Novo Nordisk, emphasized that the partnership aims to discover new GLP-1 treatments that can be administered less frequently, thereby reducing the burden and costs for patients.

Novo Nordisk and its competitor Eli Lilly have both been instrumental in establishing the market for GLP-1 therapies, particularly for obesity and weight loss, with their respective products Wegovy and Zepbound. The next generation of these treatments is focused on making administration easier, including the development of oral options and reduced dosing frequencies.

Novo Nordisk has been proactive in securing multiple collaborations to enhance its pipeline of GLP-1 therapies and broader weight loss drug development. Before this partnership with Ascendis, Novo Nordisk entered into a $600 million deal with Metaphore Biotechnologies in May to work on two new GLP-1 receptor agonists. This agreement is part of a broader collaboration with venture creation firm Flagship Pioneering, which was initiated in 2022. Furthermore, in January, Novo Nordisk signed a $225 million licensing deal with EraCal to access an oral small molecule program for metabolic diseases.

In summary, Novo Nordisk's $285 million partnership with Ascendis Pharma marks a strategic effort to advance GLP-1 therapies with less frequent dosing. This collaboration underscores Novo Nordisk's commitment to reducing patient burden and improving treatment options for metabolic and cardiovascular diseases. By leveraging Ascendis' TransCon technology, Novo Nordisk aims to expand its influence in the GLP-1 market, building on its existing success with products like Wegovy.