Septerna (NASDAQ:SEPN) shares surged almost 50% after the announcement of an exclusive global collaboration and license deal with Novo Nordisk (NYSE:NVO) to develop oral small molecule medicines targeting obesity and other cardiometabolic diseases.
The partnership brings together Septerna’s expertise in G protein-coupled receptor (GPCR) drug discovery with Nono Nordisk’s established obesity and metabolic disease therapies, which include the injectables Wegovy and Ozempic.
The collaboration will initiate four development programs focusing on GPCR targets such as GLP-1, GIP, and glucagon receptors, which are critical in metabolic regulation.
Septerna will receive compensation of approximately $2.2 billion, including over $200 million in upfront and near-term milestone payments, plus tiered royalties on global net sales of any marketed products.
Novo Nordisk will also cover all research and development expenses related to these partnered programs.
“Novo Nordisk has a long-standing track record of bringing transformative therapies to market, particularly in the field of metabolic disease, which makes them the ideal partner to advance a suite of programmes targeting critical GPCRs for treating obesity, type 2 diabetes and other related conditions,” Septerna CEO Dr Jeffrey Finer said in a statement.
“This collaboration provides a significant opportunity to create multiple potentially groundbreaking oral medicines, while also providing Septerna with the operational flexibility and resources to advance our diverse portfolio of other GPCR-targeted programmes.”
Closing of the agreement is expected in the second quarter of 2025.
Shares of Septerna added 48.8% at $10 on the news, while Novo Nordisk shares were down 1% at about $65.