Novo Nordisk, already a heavyweight in the realm of obesity medication with its blockbuster seller Wegovy, continues to exhibit its hunger for cardiometabolic drugs. The pharmaceutical titan from Denmark is satiating this appetite by purchasing a startup that boasts a novel approach to weight loss. This marks Novo Nordisk’s second acquisition agreement in the last month.
The recent purchase is Embark Biotech, with the deal terms announced on this Wednesday having Novo Nordisk paying €15 million (approximately $16.4 million) in cash up front. A further €456 million (approximately $498 million) is attached to various milestones.
Embark Biotech was formed in 2017, originating from the University of Copenhagen’s Novo Nordisk Foundation Center for Basic Metabolic Research. The startup was co-founded by Zach Gerhart-Hines, a professor at the university with a specialization in adipose (fat) tissue biology.
Several drugs developed for obesity, including Wegovy, suppress appetite. Wegovy mimics the GLP-1 hormone as a GLP-1 agonist and encourages the body to produce more of the blood sugar-regulating hormone, insulin. While GLP-1 agonists initially found use as treatments for type 2 diabetes, their weight loss impacts made them attractive as obesity therapies.
Previous statements by Embark mentioned it had discovered a novel target that not only suppresses appetite, but also escalates energy expenditure to burn calories. The target not named in the Novo Nordisk announcement, however, Gerhart-Hines’s university lab had made progress researching the G protein-coupled receptor 3, or GPR3. This receptor enables thermogenesis, the production of heat. Fat cells take glucose and fatty acids from the blood during thermogenesis and burn them as fuel.
Researchers from the University of Copenhagen found that test mice genetically engineered to produce GPR3 excessively in brown fat or adipose tissue were shielded from metabolic disease. This protection carried on even though the mice were given a high-calorie diet. The results of this study were published in the journal Cell in 2021. The European Research Council, the Independent Research Fund of Denmark, and the Novo Nordisk Foundation provided the funding for the research.
Novo Nordisk speaks of Embark’s development of its target as having started under an early partnership with the pharmaceutical behemoth. Continued support was offered by the InnoBooster program at the Innovation Fund Denmark and the BioInnovation Institute for this research.
Embark Biotech employees will remain onboard and work at a newly formed entity, Embark Laboratories. This Danish biotech specialising in cardiometabolic disease will primarily focus on therapies that emphasize energy expenditure. The chief technology officer of Embark Laboratories is Gerhart-Hines. Novo Nordisk has an option to acquire selected assets from Embark Laboratories, based on discoveries by Embark Biotech. These drugs can be further developed for indications such as obesity and type 2 diabetes.
“Novo Nordisk has been focused on obesity research for 25 years, and we unceasingly search for innovative ways to handle this severe chronic disease,” commented Brian Finan, the vice president of obesity research at Novo Nordisk, in a prepared statement. “We are thrilled at the chance to advance Embark Biotech’s lead program and look forward to co-creating pioneering treatments for cardiometabolic diseases with Embark Laboratories in order to supplement our in-house R&D.”
Novo Nordisk’s recent acquisition of Embark presents a new approach to metabolic disorders different from the path taken by Inversago, a startup whose acquisition agreement was announced three weeks prior. Inversago, which is in the clinical stage, is developing small molecules that inhibit the cannabinoid receptor type 1, or CB1. This receptor is located within the central nervous system and the gastrointestinal system, and blocking it can suppress appetite. If Inversago’s drug candidates reach their milestones, Novo Nordisk could end up paying its shareholders over $1 billion.
Nearly a year ago, Rivus Pharmaceuticals unveiled a $132 million Series B financing round to back their mid-stage clinical development of drugs known as controlled metabolic accelerators. These drugs take aim at the energy-producing elements of cells, mitochondria, and amplify their energy expenditure. The Gencia-based science of this Charlottesville, Virginia-based company focuses on drugs that target mitochondria.