Novo Nordisk Secures $2.2B Deal with Septerna for Obesity Drug Programs

Novo Nordisk has made a significant move in the obesity treatment market, signing a $2.2 billion deal with biotech company Septerna for rights to preclinical oral small molecules targeting GLP-1 and other receptors. This agreement marks another strategic investment by Novo Nordisk in the rapidly expanding field of obesity therapeutics.

Deal Structure and Financial Details

The collaboration between Novo Nordisk and Septerna involves an upfront payment of over $200 million, with the potential for up to $2.2 billion in total value through milestone payments. The deal encompasses four development programs focused on small molecules aimed at one or more targets, including GLP-1, GIP, and glucagon receptors.

Under the terms of the agreement, Novo Nordisk and Septerna will jointly collaborate during the early stages of these programs. Novo Nordisk will assume sole responsibility starting at the IND-enabling activities phase. Notably, Septerna retains an option to take a share of the profits on one program instead of receiving milestone payments.

Septerna's Innovative Approach

Septerna's approach to obesity treatment centers on a unique binding pocket discovery that could potentially set its molecules apart from competitors. The company claims that this binding site has 80% to 90% sequence similarity across GLP-1, GIP, and glucagon receptors, compared to 40% to 60% for rival assets. This high degree of similarity may allow Septerna to target multiple incretin receptors using a single small molecule.

Jeffrey Finer, M.D., Ph.D., CEO of Septerna, highlighted the company's progress in developing various receptor agonists:

• A single-target GIP receptor agonist
• A dual-action molecule targeting GIP and glucagon
• Preliminary work on a triple-action molecule activating GLP-1, GIP, and glucagon simultaneously

Preclinical Data and Market Implications

Septerna has shared preclinical data on its GIP receptor agonist, demonstrating promising results in combination with semaglutide, the active ingredient in Novo Nordisk's Ozempic and Wegovy. In mouse studies, the combination led to a 33% body weight reduction over 14 days, compared to 24% for semaglutide alone.

These results are particularly significant as they mirror the efficacy of Eli Lilly's tirzepatide, the active ingredient in Mounjaro and Zepbound, which targets both GLP-1 and GIP receptors. Septerna's data suggest that adding an oral GIP agonist to semaglutide could potentially provide tirzepatide-like efficacy, potentially strengthening Novo Nordisk's position in the competitive obesity treatment market.

This deal comes at a time when Eli Lilly, Novo Nordisk's main rival in the obesity market, is advancing its own small-molecule GLP-1 agonist, orforglipron. Lilly recently shared Phase 3 data suggesting Ozempic-like efficacy in Type 2 diabetes and is racing towards Phase 3 obesity readouts, with potential regulatory submissions for weight loss expected this year.