Novo Nordisk stakes $255 million to acquire another obesity asset

Novo Nordisk has signed a partnership with EraCal Therapeutics, a Swiss biotech specializing in phenotypic drug discovery technology. The Danish pharmaceutical giant has committed to investing up to 235 million euros ($255 million) in EraCal to delve into an innovative mechanism of action targeting appetite and body weight regulation.

This collaboration builds upon a research alliance established two years ago between Novo Nordisk and EraCal. The primary objective of this collaboration was to explore potential treatments for obesity using zebrafish larvae, a distinctive approach that enables the evaluation of the impact of molecules on food intake in a more intricate, in vivo environment.

Utilizing its advanced drug discovery platform, EraCal identified a promising small molecule believed to address obesity by targeting a novel mechanism for controlling appetite and body weight. Novo Nordisk has obtained exclusive rights to this oral program, securing its position through an undisclosed initial payment and additional development and commercial milestones that could bring the total deal value to 235 million euros.

Despite the substantial investment, specific details about the acquired asset remain undisclosed. EraCal had previously introduced Era-379 as its lead candidate, characterizing it as an oral small-molecule appetite suppressor with a distinctive mechanism involving an undisclosed protein influencing liver–brain signaling. Notably, Era-379 is designed to impact appetite without affecting the vagus nerve, setting it apart from existing obesity drugs that target GLP-1 receptors.

In addition to Era-379, EraCal has alluded to other small molecule programs focused on energy expenditure, appetite induction, and circadian cycles. However, the specifics of these programs were not disclosed in the statement announcing the collaboration with Novo Nordisk.

Novo Nordisk’s decision to license EraCal’s program aligns with its broader business development strategy in the obesity domain. Over the past two years, the company has acquired Embark Biotech and Inversago Pharma, entered collaborations with Omega Therapeutics, and strategically positioned itself as a frontrunner in the increasingly competitive obesity treatment market.

Lars Jørgensen, CEO of Novo Nordisk, conveyed confidence in facing obesity competition during the J.P. Morgan Healthcare Conference. He emphasized that raising awareness of obesity as a chronic disease is advantageous for business.

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