Novo Nordisk Licensed Ascendis Pharma’s Obesity Drug Technology

Novo Nordisk (NVO, Financials) signed an exclusive agreement with Ascendis Pharma (ASND, Financials) will license Ascendis’ TransCon technology platform to develop new therapies targeting metabolic and cardiovascular diseases.

The main emphasis of the partnership, with possible developments in other therapeutic areas, is the use of once-monthly GLP-1 receptor agonists for type 2 diabetes and obesity. Novo Nordisk, already a major competitor in the weight loss market, wants to reduce the frequency of GLP-1 receptor agonist dosing through this collaboration. The company’s most commonly used weight loss drug, Wegovy (semaglutide), is used weekly.

Under the agreement, Ascendis will undertake initial development of TransCon-based candidates and receive up to $285 million in upfront and milestone payments for the lead program. Other candidates may receive additional payments of up to $77.5 million per person, based on regulatory and developmental criteria. In addition, Ascendis is entitled to sales-based milestone payments and affiliate royalties on worldwide net sales.

Clinical development, regulatory approval, manufacturing and commercialization of any drugs resulting from the collaboration will be owned by Novo Nordisk.

The businesses want to finalize the deal by the end of 2024.

This article was first published on: GuruFocus.