Novo Nordisk, Septerna to collaborate to develop obesity pills

Septerna (SEPN) and Novo Nordisk (NVO) announced an exclusive global collaboration and license agreement to discover, develop and commercialize oral small molecule medicines for obesity, type 2 diabetes and other cardiometabolic diseases. The companies will initially commence four development programmes for potential small molecule therapies directed to one or more select G protein-coupled receptor targets, including the GLP-1, GIP and glucagon receptors. Under the terms of the agreement, Septerna is eligible to receive approximately $2.2B from Novo Nordisk across an upfront payment and research, development and commercial milestone payments. This includes more than $200M in upfront and near-term milestone payments. Septerna is also eligible to receive tiered royalties on global net sales of marketed products. Novo Nordisk will cover all research and development expenses for partnered programs under the collaboration. The companies will jointly conduct research activities from discovery through development candidate selection. Starting at IND-enabling activities, Novo Nordisk will have sole responsibility for all global development and commercialization activities. In addition, Septerna has the right to opt in to a worldwide profit share for one program in the collaboration in lieu of future milestones and royalties for that product candidate. The agreement is subject to customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Closing is expected to occur in the second quarter of 2025.