Novo Nordisk obtains full rights to develop and commercialise Embark Biotech’s lead programme, in exchange for €15m in an upfront cash payment, and up to €456m in potential development, regulatory, and commercial milestone payments
Novo Nordisk headquarters, Denmark. (Credit: Novo Nordisk A/S)
Danish pharmaceutical company Novo Nordisk has acquired Embark Biotech and has entered a three-year research and development collaboration to discover and develop novel treatments for obesity and related co-morbidities.
Established in 2017, Embark Biotech is a spin-out of the Novo Nordisk Foundation Centre for Basic Metabolic Research (CBMR) at the University of Copenhagen.
Under the terms of the acquisition agreement, Novo Nordisk obtains full rights to develop and commercialise Embark Biotech’s lead programme.
Embark shareholders will receive €15m in an upfront cash payment, along with potential development, regulatory, and commercial milestone payments of up to €456m.
Novo Nordisk said that the research and development collaboration with Embark Laboratories will provide the company with an option to acquire select assets.
The Dutch drugmaker will acquire additional assets based on the Embark Biotech discoveries across several indications, including obesity and type 2 diabetes.
Novo Nordisk obesity research vice president Brian Finan said: “Novo Nordisk has been engaged in obesity research for 25 years, and we continuously search for new ways to address this serious chronic disease.
“We are excited about the opportunity to advance Embark Biotech’s lead program and look forward to co-creating novel treatments for cardiometabolic diseases with Embark Laboratories to complement our in-house R&D.”
Embark Laboratories discovered a novel target that suppresses appetite increases energy expenditure and enhances insulin sensitivity.
The company initiated the development of its novel target through an early collaboration with Novo Nordisk.
The project received support and guidance from the InnoBooster program at the Innovation Fund Denmark and the BioInnovation Institute (BII).
The entire Embark Biotech staff will continue in Embark Laboratories, a Danish biotech company that focuses on cardiometabolic diseases.
Embark Laboratories chief technology officer Zach Gerhart-Hines said: “There is a clear strategic fit between the novel biology we have discovered and Novo Nordisk’s expertise and focus on developing new drugs in the cardiometabolic space.
“We are thrilled to pass on the baton for our lead metabolic program to Novo Nordisk. This deal and Embark’s success are direct outcomes of the unique and innovative ecosystem in Denmark that has been cultivated by the BioInnovation Institute and the University of Copenhagen and through initiatives from the Novo Nordisk Foundation and the Innovation Fund Denmark.”
Recently, Novo Nordisk has agreed to acquire Canada-based Inversago Pharma for up to $1.07bn in cash, including development and commercial milestone payments.