Wegovy manufacturer Novo Nordisk (NVO) has agreed to buy Embark Biotech for 15 million euros ($16 million) in cash upfront, a move that could bolster Novo Nordisk's portfolio of weight loss treatments. Additionally, Embark shareholders could receive up to €456 million ($500 million), depending on whether certain business milestones are reached.
KEY THINGS TO REMEMBER
- Novo Nordisk acquires Embark Biotech to develop new weight loss treatments.
- Embark shareholders will receive $16 million in cash upfront, with potential payout of up to $500 million dollars depending on whether commercial milestones are reached.
- The obesity treatment market is expected to reach $54 billion by 2030, according to Morgan Stanley Research.
The companies announced a three-year collaboration to research and develop new treatments for obesity and the associated conditions will also give Novo Nordisk the opportunity to acquire assets based on Embark Biotech's discoveries.
In 2014, a team of scientists from the Center for Basic Metabolic Research (CBMR) from the Novo Nordisk Foundation at the University of Copenhagen has made discoveries supporting hunger suppression, calorie burning and increased insulin sensitivity. They filed a patent and Embark Biotech is spun off from CBMR. His success in research led to the current deal.
“We are excited about the opportunity to advance Embark Biotech's core program and look forward to co-creating new treatments for cardiometabolic diseases with Embark Laboratories to complement our in-house R&D,” he said. said Brian Finan, vice president of obesity research at Novo Nordisk, in a statement.
The Obesity Drug Market is expected to reach $54 billion by 2030, up from $2.4 billion in 2022, according to Morgan Stanley Research. Worldwide, approximately 650 million people are clinically obese, of whom only about 7% are diagnosed and recommended for medical treatment.
US Certificates of; Foreign (ADR) shares of Novo Nordisk fell around 0.7% in early trading on Wednesday, but remained up more than 40% on the year.
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