Novo and Aspect have been collaborating since 2023 to develop cellular medicines, and said that the new partnership phase builds on the momentum achieved in the existing collaboration.
- Novo and Aspect have been collaborating since 2023 to develop cellular medicines.
- Under the deal, Aspect has acquired rights to stem cell-derived islet cell and hypoimmune cell engineering technologies from Novo Nordisk and will now lead their development.
- Novo, in turn, will make an additional equity investment in Aspect and provide research funding.
Danish drugmaker Novo Nordisk (NVO) said on Tuesday that it is looking to develop new medicines for diabetes as part of its new partnership with Canadian biotech firm Aspect Biosystems.
Novo and Aspect have been collaborating since 2023 to develop cellular medicines. The companies said that the new partnership phase builds on the momentum achieved in the existing collaboration.
Deal Terms
Under the deal, Aspect has acquired rights to stem cell-derived islet cell and hypoimmune cell engineering technologies from Novo Nordisk. This refers to technology allowing for making insulin-producing cells from stem cells for diabetes treatment and modifying cells to evade the immune system, thereby avoiding immune rejection. The privately-held company will now lead its development, manufacturing and commercialisation.
Novo, in turn, will make an additional equity investment in Aspect and provide research funding. It will also retain rights to expand its role in late-stage development and commercialisation as well.
Novo Nordisk will be eligible to receive royalties and milestone payments on future product sales from Aspect. However, the companies didn’t provide the financial terms of the agreement.
Novo On Lookout For More
Last week, Novo said it is on the lookout for merger and acquisition deals to boost its drug portfolio.
Novo’s CEO Mike Doustdar said during the annual JP Morgan Healthcare conference that the company will continue searching for molecules, assets, and companies that are complementary to its portfolio. Doustdar said that the company can afford any amount for an asset, provided it is worth it.
Novo’s best-selling drugs now include Wegovy and Ozempic for weight loss and diabetes, respectively.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around NVO stayed within the ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.
NVO shares have fallen 25% over the past 12 months.
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