Ascendis Pharma Grants Novo Nordisk Exclusive License for TransCon Technology
In a significant move, Ascendis Pharma A/S (ASND) has granted Novo Nordisk A/S (NVO) an exclusive worldwide license for its innovative TransCon technology platform. This strategic alliance aims to develop, manufacture, and commercialize Novo Nordisk’s proprietary products for a range of metabolic and cardiovascular diseases, including obesity, type 2 diabetes, and other related conditions.
The agreement encompasses a product-by-product exclusive license for cardiovascular diseases. It also includes provisions requiring specific TransCon technology-based products to be identified and advanced in metabolic diseases to maintain exclusivity in this therapeutic area. Importantly, Novo Nordisk secures exclusive rights to expand any resulting metabolic disease products into other therapeutic areas.
Key Focus: Long-Acting GLP-1 Receptor Agonist
The lead program under this collaboration is a once-monthly GLP-1 receptor agonist product candidate. This innovative treatment is initially targeted at obesity and type 2 diabetes. Ascendis stands to benefit from upfront, development, and regulatory milestone payments totaling up to $285 million for this lead program. Additionally, the company is eligible for sales-based milestone payments and tiered royalties on global net sales.
Financial Benefits for Ascendis
Each additional metabolic or cardiovascular disease product candidate that emerges from this partnership will qualify Ascendis for up to $77.5 million in development and regulatory milestone payments, along with sales-based milestone payments and tiered royalties on global net sales. The early development of TransCon product candidates will be conducted collaboratively, with Novo Nordisk assuming responsibility for clinical development, regulatory processes, commercial manufacturing, and ultimately, commercialization.
Executive Statements Highlight Strategic Importance
Jan Mikkelsen, President and CEO of Ascendis Pharma, commented, “The agreement with Novo Nordisk reflects our Vision 2030 to create value in additional large therapeutic areas outside endocrinology rare disease through collaborations with established global leaders.” Brian Vandahl, Senior Vice President of Global Research Technologies at Novo Nordisk, expressed enthusiasm, stating, “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.”
Transaction Timeline
The transaction is anticipated to close before the end of 2024. On Monday, ASND stock saw an increase of 1.91%, closing at $127.67, while NVO stock experienced a decrease of 1.61%, settling at $110.14.
This strategic alliance marks a significant step forward in developing long-acting treatments for metabolic and cardiovascular diseases. The collaboration leverages Ascendis’s cutting-edge TransCon technology and Novo Nordisk’s established expertise in these therapeutic areas, promising impactful advancements in patient care.
