10:54 AM EDT, 05/14/2025 (MT Newswires) -- Novo Nordisk ( NVO ) on Wednesday entered into a global collaboration and licensing agreement with Septerna ( SEPN ) to develop and commercialize medicines for obesity, type 2 diabetes, and other cardiometabolic diseases.

California-based Septerna ( SEPN ) will be eligible to receive about $2.2 billion in upfront and milestone payments from the Danish pharmaceutical giant, the companies said in a joint statement. The deal is expected to complete in the second quarter.

Septerna ( SEPN ) is also eligible to receive tiered royalties on marketed product sales globally. Novo Nordisk ( NVO ) will cover all research and development expenses for partnered programs under the collaboration agreement.

Shares of Septerna ( SEPN ) jumped 48% in Wednesday trade, while Novo Nordisk's ( NVO ) US-listed stock gained 1.5%.

The companies plan to initially launch four development programs for potential small molecule therapies for one or more select G protein-coupled receptors, including the glucagon-like peptide-1, or GLP-1, glucose-dependent insulinotropic polypeptide, or GIP, and glucagon.

"Septerna ( SEPN ) has demonstrated strong capabilities in GPCR drug discovery, and we are excited about the opportunity to develop oral small molecule medicines directed at multiple targets," Novo Nordisk ( NVO ) Chief Scientific Officer Marcus Schindler said in the statement.

The companies will collaborate on research, while Novo Nordisk ( NVO ) will be solely responsible for global development and commercialization initiatives.

"This collaboration provides a significant opportunity to create multiple potentially groundbreaking oral medicines, while also providing Septerna ( SEPN ) with the operational flexibility and resources to advance our diverse portfolio of other GPCR-targeted programmes," Septerna ( SEPN ) Chief Executive Jeffrey Finer said.

In March, Novo Nordisk ( NVO ) secured exclusive global rights to China-based United Laboratories International's therapeutic candidate for obesity and type 2 diabetes in a licensing deal worth up to $2 billion.

Revenue in the company's diabetes and obesity care segment climbed 21% year over year in the first quarter, led by an 85% increase for its Wegovy weight loss drug.

Price: 64.88, Change: -0.52, Percent Change: -0.80