Blockbuster weight-loss drug maker Novo Nordisk has announced research collaborations with two U.S. biotech firms, Omega Therapeutics and Cellarity Inc. These partnerships are part of Novo’s efforts to stay ahead in the race to develop more treatments for cardiometabolic diseases, including obesity and a type of liver disease known as MASH.
The collaborations with Omega and Cellarity could lead to new treatments for individuals living with obesity and MASH. As a result of this news, shares of Omega skyrocketed, nearly doubling in U.S. premarket trading.
These collaborations mark the first research and development agreements under a framework deal that Novo signed in 2022 with Flagship Pioneering, a U.S. investment firm specializing in life sciences. Both Omega and Cellarity are portfolio companies of Flagship. Together, they will embark on pre-clinical trial drug development work with Novo, with the potential for Novo to advance the programs into clinical studies.
Under the respective agreements, Novo has agreed to reimburse research and development costs. Each collaboration may involve upfront, development, and commercial milestone payments totaling up to $532 million. Additionally, the agreements include tiered royalties on annual net sales of any licensed product, which will be shared between the respective companies and Flagship.
Uli Stilz, the vice president of Novo’s Bio Innovation Hub in Cambridge, Massachusetts, stated that the project will foster innovation that Novo and the collaborating companies could not achieve individually. Stilz, who will oversee the research partnerships, confirmed that the work will run parallel to Novo’s ongoing clinical collaborations and its acquisition of other companies through bolt-on deals.
Novo Nordisk’s share price had already risen significantly in 2022, driven by the soaring demand for its weight-loss medicine Wegovy. With these new research tie-ups, Novo aims to further solidify its position in the cardiometabolic treatment sector and continue its innovative strides in the field.
In conclusion, Novo Nordisk’s recent research collaborations with Omega Therapeutics and Cellarity Inc demonstrate the company’s commitment to developing new treatments for obesity and liver disease. With significant financial investments and the expertise of both Novo and its partner companies, these collaborations hold great potential for the advancement of medical solutions in the field of cardiometabolic diseases.
