Novo Nordisk is moving forward with plans to develop oral obesity drugs through a new partnership, which comes as longtime CEO Lars Fruergaard Jørgensen prepares to step down.
The drugmaker launched a partnership with U.S.-based Septerna to develop small-molecule treatments for obesity, Type 2 diabetes and other conditions, according to a May 14 news release from Novo Nordisk.
Under the agreement, Novo Nordisk will pay more than $200 million up front, with Septerna eligible to receive up to $2.2 billion based on development. Novo Nordisk will take over full development and commercialization after early research stages.
The news follows the announcement that Mr. Jørgensen, who has led Novo Nordisk since 2017, will step down amid increased competition in the obesity drug market and disappointing trial results for the drugmaker’s next generation treatments, CNBC reported May 16. Novo Nordisk’s share price had declined by more than 50% since mid-2024.
Despite the leadership change, Novo Nordisk said its strategy remains unchanged, with former CEO and Novo Nordisk foundation Chair Lars Rebien Sørensen set to join the company’s board as an observer during the transition.
