Novo Nordisk A/S Sponsored ADR Class B (NVO.US) expands collaboration with Valo Health, jointly investing $4.6 billion to develop new drugs for heart metabolism.

Danish pharmaceutical giant Novo Nordisk A/S Sponsored ADR Class B (NVO.US) and artificial intelligence biotech company Valo Health announced on Wednesday an expansion of their collaboration aimed at accelerating the development of new therapies for metabolic heart diseases. Under the latest agreement, the two parties will collaborate on 20 new drug projects, covering cardiovascular diseases, obesity, and type 2 diabetes, with Valo expected to receive a total of approximately $4.6 billion in milestone payments and other research funding and royalty payments. The initial collaboration agreement reached in 2023 focused on the field of cardiovascular diseases, with Novo Nordisk A/S Sponsored ADR Class B and Valo agreeing to collaborate on up to 11 drug projects. At that time, Valo had the right to receive up to $2.7 billion in milestone payments. The revised agreement significantly expands the scope of collaboration, adding 9 new projects focused on treatments for obesity, type 2 diabetes, and cardiovascular diseases. As part of the agreement, Valo will also receive a comprehensive funding of $190 million from Novo Nordisk A/S Sponsored ADR Class B, including upfront payments, equity investments, and potential milestone payments. Marcus Schindler, Chief Scientific Officer of Novo Nordisk A/S Sponsored ADR Class B, expressed great satisfaction with the progress in the first year of the collaboration and emphasized expectations for expanding the scope of collaboration and focusing on more disease areas.