Dive Brief:
- Novo Nordisk is investing further in obesity and metabolic disease, signing a deal to use Ascendis Pharma’s delivery technology to advance a long-acting GLP-1 drug as well as develop products in diabetes and cardiovascular conditions, Ascendis said Monday.
- Per deal terms, Novo could pay up to $285 million in immediate and milestone-based fees to Ascendis for the GLP-1 drug, depending on its progress toward approval. In addition, Ascendis could receive up to $77.5 million for each additional drug developed.
- Ascendis has won Food and Drug Administration approval of two products using its extended release technology, both in rare conditions. In partnering with Novo, Ascendis would gain entry into conditions that have blockbuster sales potential.
Dive Insight:
Ascendis claims its drug delivery technology can be tailored to reduce dosing frequency or deliver a therapeutic molecule directly to tissue with disease activity. Its two approved products, Skytrofa for growth hormone deficiency and Yorvipath for hypoparathyroidism, are weekly and daily shots, respectively.
In obesity and diabetes, the leading GLP-1 drugs, which include Novo’s Wegovy and Ozempic, require injections once a week. Novo believes longer-acting agents could help patients stay on their medications. Research released in July showed that more than half of those who initiate GLP-1 treatment discontinue use in just six months.
“We look forward to working with Ascendis to explore the potential of the TransCon technology platform to reduce the dosing frequency of GLP-1 receptor agonists and other treatments for cardiometabolic diseases,” said Brian Vandahl, senior vice president of global research technologies at Novo Nordisk, in a statement.
The lead product under the collaboration, which grants Novo an exclusive worldwide license to Ascendis’ technology, is a once-monthly GLP-1 drug.
Ascendis will conduct early development of the drugs developed under the collaboration, with Novo financing that stage of research and assuming clinical, regulatory and commercial development of the drugs.
The fees from this collaboration will add to several cash infusions Copenhagen-based Ascendis has received to help fund its operations. In September, Ascendis sold 3% of Yorvipath royalties to Royalty Pharma for $150 million and, later in the same month, sold $281 million in shares following approval of Yorvipath.
Despite having two approved products, only one is fully launched. Ascendis lost 240 million euros, or about $262 million, in the first six months of the year. It held 259 million euros in cash as of June 30.
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- Source: https://www.biopharmadive.com/news/novo-ascendis-glp-1-obesity-diabetes-deal/731871/