The news of a significant partnership agreement with Danish pharmaceutical giant Novo Nordisk is driving Septerna, Inc. (NASDAQ: SEPN) shares to soar 53.79% on the charts to $10.35 as of today’s latest check. The $2.2 billion transaction is a significant turning point for US-based SEPN that has rekindled investor interest.
On Wednesday, the two companies made the agreement public, stating that they will work together to create innovative oral small molecule therapies for obesity, type 2 diabetes, and other cardio-metabolic conditions.
Increasing Drug Portfolio for Obesity
The $150 billion worldwide obesity industry is being aggressively pursued by Novo Nordisk, the company behind the popular weight-loss drug Wegovy.
With strategic acquisitions and license agreements, Novo is bolstering its scientific leadership in the face of increasing competition from Eli Lilly’s Zepbound, which recently surpassed Wegovy in U.S. prescriptions. The company’s attempts to expand its pipeline, particularly in the small molecule therapies sector, are bolstered by the most recent agreement with Septerna.
Emphasis on GPCR-Based Treatments
Septerna focuses on G-protein-coupled receptors (GPCRs), a vital protein family that controls many physiological functions such as immunological response, metabolism, and secretion.
The partnership will launch four development initiatives focused on GPCR targets, which are essential for medication absorption and cellular signaling. The potential effect of the research cooperation is highlighted by the deal, which includes over $200 million in upfront and near-term milestone payments to Septerna.
A Broader Trend in Pharma M&A
Separately, U.S. regulators have approved Novo Nordisk’s application for an oral version of Wegovy. If authorized, it would mark a new era in weight-management treatments as the first oral GLP-1 receptor agonist authorized for the treatment of obesity.
Septerna’s (SEPN) collaboration marks the second major pharmaceutical transaction in the obesity sector in recent months. In March, Roche announced a deal worth up to $5.3 billion to co-develop an obesity drug with Zealand Pharma.