Denmark-based healthcare giant Novo Nordisk (NYSE: NVO; CPH: NOVO-B) has entered into a licensing agreement with compatriot firm Ascendis Pharma A/S (NASDAQ: ASND), a specialist in rare diseases. The collaboration grants Novo Nordisk exclusive rights to utilize Ascendis’ TransCon technology platform globally for the development, manufacturing, and commercialization of proprietary products in metabolic diseases, including obesity and type 2 diabetes, as well as an exclusive license for cardiovascular diseases on a product-by-product basis.
Lead Program and Financial Terms of the Agreement
The flagship program under this agreement is a once-monthly GLP-1 receptor agonist product candidate, which will initially focus on obesity and type 2 diabetes. Novo Nordisk is also granted exclusive rights to expand any metabolic disease products into other therapeutic areas. In return, Novo Nordisk will pay Ascendis up to USD 285 million in upfront, development, and regulatory milestone payments for the lead program, along with sales-based milestone payments and tiered royalties on global net sales. For each additional metabolic or cardiovascular disease product candidate, Ascendis will be eligible to receive payments of up to USD 77.5 million in development and regulatory milestone payments, plus sales-based milestone payments and tiered royalties on global net sales.
Development and Commercialization Responsibilities
Ascendis will handle the early development of TransCon product candidates under the collaboration, while Novo Nordisk will cover the associated early development costs and take on responsibilities for clinical development, regulatory, commercial manufacturing, and commercialization.- Flcube.com
