$2.2 billion for biotech Sapterna

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

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

Sapterna’s inventory was up 64% in pre-market buying and selling Wednesday, whereas Novo’s traded up a bit over 2%.

The deal is the newest in a sequence centered on the tablet marketplace for weight problems, deemed the following frontier within the race for the following technology of weight reduction medication. Novo already has an oral model of its high weight reduction injectable, Wegovy, awaiting FDA approval. It may see a call from the FDA by the tip of this 12 months.

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

Novo additionally not too long ago introduced a $1.75 billion take care of Lexicon (LXRX) for an oral weight problems therapy at the moment in improvement.

Along with the offers for tablets, the corporate has additionally secured offers to assist enhance entry to its medication. 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 prepared to pay money. The take care of CVS additionally features a money pay choice, for $499 per 30 days, about half the record worth of the drug.

The take care of Septerna places the biotech in cost via the early discovery and dosing part, and as soon as a lead choice is chosen Novo will take over manufacturing and improvement. Septerna will obtain $195 million up entrance, and as much as $500 million extra for every of its 4 present tablet candidates in the event that they make it via early trials.

JPM analysts stated in a observe to shoppers the transfer was a transparent enhance 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 help its operations into 2028.

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

Anjalee Khemlani is the senior well being reporter at Yahoo Finance, protecting all issues pharma, insurance coverage, care providers, digital well being, PBMs, and well being coverage and politics. That features GLP-1s, in fact. Comply with Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem.