Key Takeaways
- Novo Nordisk said it inked research agreements with two American biotech firms to further develop metabolic-related treatments.
- The pharmaceutical company is already the market leader in weight-loss drugs through its GLP-1 products including Ozempic and Wegovy.
- Shares of NVO stock rose more than 4% on the news of the new deals.
Shares of Novo Nordisk (NVO), the market leader in weight-loss drugs, jumped more than 4% Thursday after the company said it inked research agreements with two American biotech firms.
The deals come as part of its partnership with venture capital firm Flagship Pioneering. As part of the deals, Novo Nordisk will reimburse the companies their research and development costs, and offer them up to $532 million in upfront and milestone payments, as well as royalties.
The first collaboration, with Cambridge, Massachusetts-based Omega Therapeutics (OMGA), will focus on developing an obesity treatment that boosts metabolic activity through thermogenesis, the body’s natural ability to generate heat and raise body temperature. Omega shares jumped more than 100% on the news before dropping down slightly from the midday high.
A separate agreement with privately-held Cellarity aims to develop a small molecule therapy for metabolic dysfunction-associated steatohepatitis (MASH), inflammation of the liver caused by the storage of excess fat.
Thursday’s gains put Novo Nordisk shares at a record high of more than $108. The stock gained more than 50% last year when booming demand for its diabetes and weight-loss drugs Ozempic and Wegovy garnered it the title of Europe’s most valuable company.