Partners Novo Nordisk (NYSE: NVO) and Valo Health have announced an expanded partnership, aiming to discover and develop novel treatments for obesity, type 2 diabetes, and cardiovascular disease. The collaboration leverages Valo’s extensive human dataset and computation powered by artificial intelligence (AI) to accelerate the development of innovative therapies.
Initial Partnership and Milestones
Novo first teamed with Valo in September 2023 in a deal involving up to USD 2.7 billion in milestone payments and up to 11 cardiovascular programs. This initial collaboration laid the foundation for leveraging AI in drug discovery and development.
Expanded Agreement Details
Under the terms of the expanded agreement, Valo is entitled to receive an upfront payment, equity investment, and a potential near-term milestone payment, totaling USD 190 million. Additionally, Valo is now eligible to receive milestone payments for up to 20 drug programs, an addition of 9 new drug programs, totaling approximately USD 4.6 billion, plus R&D funding and potential royalty payments.
Significance of the Expanded Partnership
This expanded partnership underscores the commitment of both Novo Nordisk and Valo Health to advancing the treatment of chronic diseases through innovative AI-powered drug discovery. By combining Valo’s AI capabilities with Novo Nordisk’s expertise in pharmaceutical development, the collaboration aims to bring new and effective therapies to patients suffering from obesity, type 2 diabetes, and cardiovascular disease.-Fineline Info & Tech
