Novo Nordisk and Ascendis Pharma Collaborate on Groundbreaking Once-Monthly GLP-1 Treatment for Obesity and Type 2 Diabetes

Partnership:
Novo Nordisk and Ascendis Pharma have entered into a collaboration to develop a once-monthly GLP-1 receptor agonist for treating obesity and type 2 diabetes.

Deal Value:
The deal is valued at up to $285 million, with additional developmental and regulatory milestone payments of up to $77.5 million for each asset, plus sales-based milestone payments and tiered royalties on net sales.

TransCon Technology:
Ascendis will grant Novo Nordisk an exclusive, worldwide license for its TransCon technology to develop, manufacture, and commercialize metabolic disease products and product-by-product licenses for cardiovascular indications.

Lead Candidate:
The collaboration's lead product candidate is a once-monthly GLP-1 receptor agonist targeting obesity and type 2 diabetes.

Regulatory Approvals:
The closing of the transaction is subject to receipt of applicable regulatory approvals, which both parties aim to achieve by the end of 2024.

Market Impact:
A once-monthly drug could be more appealing to patients compared to the once-weekly dosing of current alternatives, potentially giving Novo Nordisk a competitive edge in the incretin space.

Competitive Landscape:
Novo Nordisk's GLP-1RA drug semaglutide (Wegovy and Ozempic) is projected to make $42.85 billion in sales by 2030, while Eli Lilly's tirzepatide (Mounjaro and Zepbound) is expected to bring in $57.65 billion in the same year.