Novo Nordisk Expands Obesity Pipeline with $812M Deep Apple Deal

Novo Nordisk, a leader in the obesity treatment market, has inked a significant deal with Deep Apple Therapeutics, further solidifying its position in the rapidly evolving field of weight management therapies. The agreement, valued at up to $812 million, focuses on developing small molecules targeting a non-incretin G protein-coupled receptor (GPCR) for the treatment of obesity and related cardiometabolic diseases.

Strategic Expansion Beyond Incretin-Based Therapies

The collaboration with Deep Apple Therapeutics marks a strategic shift for Novo Nordisk, as the company looks to diversify its obesity pipeline beyond its current incretin-based treatments. This move comes in the wake of recent setbacks, including the underwhelming performance of CagriSema in phase 3 trials late last year.

Deep Apple, founded by Apple Tree Partners with a $52 million Series A funding round, specializes in the discovery of small-molecule drug candidates using artificial intelligence-generated virtual libraries. The biotech's innovative approach combines advanced structural biology techniques, including cryo-electron microscopy, with virtual screening to identify novel binding pockets and potential drug candidates.

Deal Structure and Development Strategy

Under the terms of the agreement, Novo Nordisk will pay up to $812 million, encompassing an upfront payment, research costs, and milestones. In return, the Danish pharmaceutical giant gains a global license to small molecules targeting a specific GPCR that is not an incretin receptor.

The collaboration leverages Deep Apple's expertise in early-stage drug discovery, with the biotech company responsible for compound discovery and optimization. Novo Nordisk will take the reins just before the initiation of IND-enabling studies, bringing its considerable resources and experience in late-stage development and commercialization to bear.

Novo Nordisk's Aggressive Deal-Making in Obesity

This latest partnership is part of a broader strategy by Novo Nordisk to reinforce its obesity pipeline through external collaborations. In recent months, the company has engaged in a flurry of deals, including:

• A $50 million agreement with Variant Bio
• An expanded collaboration with Valo Health worth $190 million in near-term payments
• A potential $354 million per target deal with Gensaic
• A $200 million arrangement with United Laboratories for a triple agonist
• Investments of $200 million and $75 million in upfront and near-term payments for preclinical prospects from Septerna and Lexicon Pharmaceuticals, respectively

These strategic moves underscore Novo Nordisk's commitment to maintaining its leadership in the obesity treatment landscape, particularly in the face of intensifying competition from rivals such as Eli Lilly.