As reported by Reuters, that would nearly double the scope of the Danish and American healthcare companies’ original September 2023 agreement.
The expanded collaboration increases potential milestone payments to Valo from US$2.7 billion to US$4.6 billion, with up to US$190 million in near-term payments. The partnership will focus on developing treatments for obesity, type 2 diabetes, and cardiovascular diseases.
This expansion comes as Novo faces challenges in its obesity drug pipeline. The company recently reported disappointing trial results for CagriSema, a potential successor to its successful weight-loss drug Wegovy, as it competes with Eli Lilly’s Zepbound in the obesity treatment market.
Both pharmaceutical giants are exploring additional health benefits of their obesity drugs, targeting a market that analysts project could reach US$150 billion within the next decade.
The development points to AI’s growing importance in drug development, including in the highly competitive obesity treatment market.
