Novo Nordisk’s Latest Acquisition

Novo Nordisk announced on Thursday that it will acquire Inversago Pharma, a privately held obesity drug maker, for up to $1.08 billion. This acquisition aims to expand Novo Nordisk’s blockbuster weight loss portfolio.

Capitalizing on the Weight Loss Industry Boom

Novo Nordisk’s decision to acquire Inversago Pharma follows the success of its Wegovy and Ozempic injections, which have gained immense popularity in the weight loss industry. The deal’s price is dependent on Inversago’s achievement of certain development and sales goals. The acquisition is expected to be completed by the end of the year.

Innovative Approach to Obesity Treatment

Inversago Pharma, based in Canada, focuses on developing experimental therapies for obesity, diabetes, and other metabolic conditions. Their drugs utilize a unique method by blocking a protein in the brain called cannabinoid receptor type 1. This protein plays a significant role in metabolism and regulating appetite, providing an alternative approach compared to traditional obesity and diabetes treatments.

In contrast, Novo Nordisk’s Wegovy and Ozempic mimic a hormone produced in the gut to suppress appetite.

Novo Nordisk’s Strategic Expansion

Martin Holst Lange, the executive vice president for development at Novo Nordisk, expressed excitement about the acquisition: “The acquisition of Inversago Pharma will further strengthen our clinical development pipeline in obesity and related disorders. This promising class of medicine pioneered by the Inversago team could lead to life-changing new treatment options for those living with a serious chronic disease and, in particular, may offer alternative or complementary solutions for people living with obesity.”

Potential of Inversago’s Leading Therapy

Inversago’s leading therapy, an oral drug, demonstrated promising results in a small phase-one clinical trial. Patients who took the drug lost an average of 7.7 pounds after 28 days, compared to those on a placebo who gained 1 pound on average. Novo Nordisk plans to further investigate the potential of this oral drug for obesity and its associated complications.

Positive Second Quarter Results

Alongside the acquisition announcement, Novo Nordisk also reported its second-quarter results and raised its full-year outlook due to the growing demand for its obesity and diabetes products. However, the company noted that supply restrictions for some Wegovy doses in the U.S. will be extended. Novo Nordisk’s CEO, Lars Fruergaard Jorgensen, anticipates a significant demand for Wegovy that may exceed supply availability until 2024.