Novo Nordisk and Ascendis are developing a monthly GLP-1 drug

Novo Nordisk (NVO-2.00%)the maker of blockbuster weight loss and diabetes drugs Wegovy and Ozempic, has entered into an agreement with Denmark-based Ascendis Pharma (ASND+1.08%) to utilize the latter's advanced drug delivery technology.

The goal of the partnership is to accelerate the development of a long-acting, monthly GLP-1 drug. GLP-1 drugs currently on the market are administered as once-weekly injections.

“Developing potential therapies that can be administered less frequently could benefit both society and individual patients, and it is a clear area of ​​focus for Novo Nordisk,” Brian Vandahl, senior vice president of global research technologies at Novo Nordisk, said in a statement Press release. “We look forward to working with Ascendis to explore the potential of the TransCon technology platform to reduce the dosing frequency of GLP-1 receptor agonists and other treatments for cardiometabolic diseases.”

GLP-1 treatments are a class of diabetes and obesity medications that mimic a hormone that regulates blood sugar and suppresses appetite. Demand for these drugs has transformed Novo Nordisk and its rival Eli Lilly (LLY-1.69%)the manufacturer of the competing drugs Mounjaro and Zepbound, one of the largest pharmaceutical companies in the world.

Viking Therapeutics is also developing a monthly GLP-1 weight loss drug.

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As part of the agreement, Novo Nordisk has secured the exclusive worldwide license to use Ascendis' TransCon technology platform to develop, produce and sell products for metabolic diseases, including obesity and type 2 diabetes, with the primary objective of developing a monthly GLP-1 is.

Ascendis could receive up to $285 million in total payments for this lead drug program, covering upfront fees, development and regulatory milestones. The Company is also entitled to revenue-based milestone payments and royalties on global net sales. For each additional product candidate targeting metabolic or cardiovascular diseases, Ascendis could earn up to $77.5 million.

Ascendis will handle the initial development of TransCon-based product candidates, with Novo Nordisk covering these early development costs. Novo Nordisk will also handle clinical development, regulatory approvals, large-scale manufacturing and commercialization.