$2.2 billion for biotech Septerna

Novo Nordisk (NVO) introduced a brand new $2.2 billion take care of San Francisco-based biotech Septerna (SEPN) for weight problems drugs — the newest in a sequence of strikes by the Danish drugmaker because it hopes to keep up its place as one among two leaders within the scorching weight problems market.

Novo Nordisk stated Wednesday that the corporate agreed to an unique collaboration and licensing settlement for “oral small molecules for weight problems, Kind 2 diabetes and different cardio-metabolic ailments,” that are all of the areas the present GLP-1 medicine handle.

Septerna’s inventory was up 64% in premarket buying and selling on Wednesday, and dropped to 48% after buying and selling started. Novo Nordisk’s inventory traded up a bit of over 1%.

Learn extra about Novo Nordisk’s inventory strikes and at this time’s market motion.

The deal is the newest in a sequence targeted on the tablet marketplace for weight problems, deemed the following frontier within the race for the following technology of weight-loss medicine. Novo Nordisk already has an oral model of its prime weight-loss injectable, Wegovy, awaiting FDA approval. It may see a call from the FDA by the tip of this yr.

Traders have been watching Novo Nordisk’s strikes carefully as Wegovy has begun to lose floor, based mostly on prescription information, to competitor Eli Lilly’s (LLY) Zepbound.

Novo additionally lately introduced a $1.75 billion take care of Lexicon (LXRX) for an oral weight problems remedy at the moment in improvement.

Along with the offers for drugs, the corporate has secured offers to assist increase entry to its medicine, notably a take care of CVS (CVS) to be the unique drug on its formulary for weight problems and offers with telehealth firms like Hims & Hers (HIMS) to assist attain sufferers keen to pay money. The take care of CVS additionally features a money pay possibility for $499 per 30 days, about half the record value of the drug.

The take care of Septerna places the biotech in cost by means of the early discovery and dosing section. As soon as a lead possibility is chosen, Novo Nordisk will take over manufacturing and improvement. Septerna will obtain $195 million upfront and as much as $500 million further for every of its 4 present tablet candidates in the event that they make it by means of early trials.

JPM analysts stated in a observe to purchasers that the transfer was a transparent increase for Septerna. The biotech had confronted some setbacks in different drug candidates and, as of final year-end, had $421 million in money readily available, which might assist assist its operations into 2028.

“We view this morning’s pre-market transfer (+70%) as applicable and stay bullish on the potential for Septerna’s platform to ship worth by means of small molecule options,” the analysts stated Wednesday.