Novo Nordisk A/S agreed to buy Embark Biotech, a Danish company working on appetite suppression, for up to €471 million ($512 million) as it seeks to retain its edge in the booming field of weight loss.
(Bloomberg) — Novo Nordisk A/S agreed to buy Embark Biotech, a Danish company working on appetite suppression, for up to €471 million ($512 million) as it seeks to retain its edge in the booming field of weight loss.
Shareholders of the closely held Embark Biotech will receive €15 million upfront and stand to gain as much as €456 million in potential milestone payments if a product advances through clinical trials and makes it to market, Novo said in a statement. The announcement also includes a three-year research and development collaboration agreement.
Novo has helped power the Danish economy as its medicines revolutionize the obesity market.
Last week, a study showed Wegovy, Novo’s blockbuster weight-loss medication, alleviated heart failure symptoms in patients with obesity.
Embark was formed in 2017 when it was spun out of the University of Copenhagen. Three scientists discovered a new target that suppresses appetite, increases energy expenditure and enhances sensitivity to insulin, the hormone that regulates how the body transforms sugar into energy.
Novo shares were little changed in Copenhagen trading.
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