Unlock Editor’s Digest Lock for Free
FT editor Roula Khalaf will select your favorite stories in this weekly newsletter.
Novo Nordisk has agreed to a partnership worth up to $2.2 billion with US biotech Septerna as Danish drugmakers seek to reinforce their pipeline of potential next-generation obesity drugs.
Wegovy and Ozempic, the pharmaceutical companies behind weight loss and diabetes medications, will work with California-based Seperterna to develop pills for obesity, type 2 diabetes and cardiovascular diseases.
Novo Nordisk, whose dominates the obesity treatment market, is suffering from some disappointing consequences for drugs that they hope to replace existing treatments when they obtain their patents in the second half of the decade.
The agreement gives Novo Nordisk the ability to target hormones that cause appetite and blood glucose control in new ways. The company initially begins work on four different potential drugs.
Marcus Schindler, Vice President and Chief Science Officer of Novo Nordisk, said this would be a “significant option.”
“We are based on scientific leadership in this field and develop a wide pipeline across a variety of targets and modalities,” he said.
Many companies want to create more convenient pills to replace injectable leading obesity and diabetes medications. Last month, Eli Lilly reported positive test results for Orforglipron, a tablet that uses the same GLP-1 mechanism as Wegovy and Ozempic, Lilly’s Mounjaro and Zepbound.
The Novo Nordisk partnership is pushing to boost the pipeline of potential blockbuster drugs after GSK agreed to pay up to $2 billion for drugs in development on Wednesday, then to treat common liver diseases related to obesity and alcohol.
The UK-registered Pharmaceuticals Group said on Wednesday it would provide a Boston drug company at around $1.2 billion and pay as much as $800 million with further milestone payments from Efimosfermin.
The purchase comes as investors are worried about GSK’s drug pipeline strength weighing on stock prices over the past year, even if last month’s first quarter results beat expectations. In February, the company began its rare £2 billion share buyback.
Preparing for final stage human trials, Efimosfermin is designed to treat and prevent the progression of fatty liver disease (SLD), which affects what is estimated to be in 20 people around the world.
Recommended
Alcohol-related liver disease, a type of SLD, is thought to affect around 26 million people and is the main cause of liver transplants in the United States.
Efimosfermin could potentially “define a new standard of care,” thanks to its monthly dosing regime and patient tolerability profile, said Tony Wood, GSK’s Chief Science Officer.
“Efimosfermin will significantly expand our liver (live-related) pipeline and provide the opportunity to develop new and best-in-class medicines with their first launch in 2029,” Wood said.
End-stage liver disease is associated with multiple morbidity, causing “substantial and disproportionate” medical costs, the company said. He said that these mitigating interventions could save the US healthcare system between $40 billion and $100 million over the next 20 years.
Health experts have issued warnings about rising obesity rates around the world, and are now estimated to affect more than a billion people. Diabetes and weight loss drugs are beginning to have an impact, but their uptake is still limited by supply and costs.
Novo Nordisk’s shares fell 3.5%, while GSK lost 2.7% within the day.
