Novo Nordisk announced a new research agreement with biotech company Metaphor Biotechnology.
The Zhitong Finance App learned that Novo Nordisk (NVO.US), the manufacturer of popular drugs Ozempic and Wegovy, announced that it has reached a new research agreement with biotech company Metaphor Biotechnology. The partnership was supported by Flagship Pioneering, which is also the venture capital company behind US vaccine manufacturer Moderna (MRNA.US). Under the agreement, Novo Nordisk agreed to pay up to $600 million to develop the next generation of obesity treatments.
In a statement on Thursday, Uli Stilz, head of Novo Nordisk's bioinnovation center, mentioned that Metaphor Biotechnology uses machine learning technology to simulate intermolecular interactions, which will help develop as many as two new drugs. The collaboration will focus on the early stages of research and aims to bring new hope to obese patients who have yet to receive effective treatment.
It is understood that obesity has become a global health problem, affecting more than 800 million adults. As a result, many pharmaceutical companies are actively developing effective and long-lasting treatment plans. Novo Nordisk aims to enhance its competitiveness in the rapidly growing obesity drug market by expanding its experimental drug product line.
According to the cooperation agreement, Novo Nordisk's payments will include advance payments, development milestone payments, and commercialization milestone payments, which may total up to 600 million US dollars. Additionally, the company will pay tiered royalties for annual net sales and reimburse R&D expenses.
It is worth mentioning that Novo Nordisk also plans to participate in Metaphor Biotechnologies' future round of financing to further deepen the partnership between the two parties.