Danish pharmaceutical company Novo Nordisk and American technology firm Valo Health announced on Wednesday the expansion of their 2023 collaboration aimed at developing innovative treatments for cardiometabolic diseases by leveraging human data and artificial intelligence (AI).
The extension of the partnership comes in the wake of a setback for Novo, as their drug candidate CagriSema demonstrated weight loss results below expectations in a recent trial. This outcome has posed a challenge to Novo’s plans to introduce a successor to Wegovy, their well-received weight-loss medication. Novo has been striving to create a weight-loss therapy that surpasses the efficacy of Eli Lilly’s Zepbound, a competing product.
Both Novo Nordisk and Lilly are actively exploring additional health benefits of their blockbuster obesity treatments for various conditions, demonstrating a competitive race within the pharmaceutical industry. Analysts forecast that the obesity drug market could reach a value of $150 billion over the next decade.
The initial collaboration between Novo and Valo, established in September 2023, was designed to facilitate the development of up to 11 drugs. With the recent expansion, Novo and Valo will join forces to identify and advance up to 20 novel therapies targeting obesity, type 2 diabetes, and cardiovascular ailments.
In accordance with the enhanced agreement, Valo stands to receive immediate payments totaling up to $190 million and potential milestone payments amounting to approximately $4.6 billion. Under the original terms of the partnership, Valo was eligible for milestone payments of up to $2.7 billion.
This strategic alliance underscores the commitment of Novo Nordisk and Valo Health to harness cutting-edge technologies and scientific insights in the pursuit of transformative treatments for cardiometabolic disorders. The collaboration reflects the shared vision of the two companies to address significant unmet medical needs and enhance patient outcomes in the global healthcare landscape.
Christy Santhosh reporting from Bengaluru. Editing by Shinjini Ganguli.
