(Reuters) -Denmark’s Novo Nordisk is partnering with biotech firm Deep Apple Therapeutics in a deal value as much as $812 million to develop medication for cardiometabolic ailments, together with weight problems, the California-based firm mentioned on Wednesday.
Deep Apple discovers drug candidates utilizing its AI-based platform that screens digital libraries of billions of compounds to chop drug discovery time, the corporate mentioned.
Below the deal, Novo will obtain unique world rights to develop and commercialize so-called non-incretin oral therapies, which belong to a unique class of medicines than its widespread weight-loss and diabetes medication Wegovy and Ozempic.
WHY IT’S IMPORTANT
Novo has been making an attempt to strengthen its foothold within the potential $150 billion weight-loss drug market by the event of next-generation remedies in addition to acquisitions and partnerships.
In March, the corporate signed two licensing offers and gained entry to experimental weight problems medication from Lexicon Prescription drugs and China-based United Laboratories Worldwide.
CONTEXT
Novo in Could ousted CEO Lars Fruergaard Jorgensen over considerations the Danish firm – a world chief within the profitable weight-loss drug market – was shedding its first-mover benefit.
The corporate’s shares have plunged since hitting a document excessive in June final 12 months as competitors, notably from U.S. rival Eli Lilly, eats into its market share, whereas Novo’s pipeline of recent medication has did not impress traders.
BY THE NUMBERS
As a part of the license settlement with Novo, Deep Apple shall be eligible to obtain as much as $812 million in funds, in addition to potential royalties on gross sales of any merchandise that emerge from their collaboration.
(Reporting by Sneha S Okay in Bengaluru; Enhancing by Shinjini Ganguli)
