Danish drugmaker Novo Nordisk and U.S. tech firm Valo Health announced the expansion of their 2023 agreement to develop new treatments for cardiometabolic diseases using human data and artificial intelligence.
The original partnership aimed to develop up to 11 drugs. With this expansion, the companies will now collaborate on up to 20 new treatments targeting obesity, type 2 diabetes, and cardiovascular diseases. Under the terms, Valo is entitled to receive near-term payments of up to $190 million, along with milestone payments totaling about $4.6 billion. This is a significant increase from the initial agreement, which included up to $2.7 billion in milestone payments.
Novo's push for innovation comes as the company faces challenges in the competitive obesity drug market. Last month, its experimental drug candidate, CagriSema, underperformed in weight-loss trials, delaying its successor to the popular weight-loss drug Wegovy. Meanwhile, Eli Lilly’s Zepbound remains a strong competitor, with both companies racing to show broader health benefits for their obesity drugs.
Analysts project the obesity drug market could grow to $150 billion in the next decade, underscoring the importance of Novo’s efforts to strengthen its pipeline.
