Novo Nordisk to Acquire Embark Biotech for $512 Million to Expand Obesity Therapeutics Pipeline

Intelligent Finance APP learned that Novo Nordisk (NVO.US) agreed to acquire Embark Biotech, a Danish company, for up to 471 million euros (512 million US dollars) to maintain its leading position in the booming weight loss field.

Novo Nordisk stated in a press release that minority shareholders of Embark Biotech will receive an upfront payment of 15 million euros, with potential milestone payments of up to 456 million euros if the products pass clinical trials and enter the market. The statement also announced a three-year R&D collaboration agreement.

Last week, a study showed that Novo Nordisk's blockbuster weight-loss drug Wegovy can alleviate heart failure symptoms in obese patients. Novo Nordisk’s medications have revolutionized the obesity market and provided a boost to Denmark's economy.

Embark Biotech was founded in 2017 when it spun off from the University of Copenhagen. Three scientists discovered a new target that can suppress appetite, increase energy expenditure, and enhance insulin sensitivity. Insulin is the hormone that regulates how the body converts sugar into energy.