Novo Nordisk strikes deal worth up to $1.1 billion to expand cardio business
COPENHAGEN (Reuters) -Denmark's Novo Nordisk said on Monday it had agreed to buy Cardior Pharmaceuticals for up to 1.03 billion euros ($1.1 billion) to strengthen its cardiovascular pipeline.
The deal is in line with Novo's aim to expand its focus on diabetes and weight-loss therapies to include cardiovascular disease treatments.
The Danish company has rocketed to become one of the world's most valuable companies on the back of its hugely popular weight-loss treatment Wegovy.
"By welcoming Cardior as a part of Novo Nordisk, we will strengthen our pipeline of projects in cardiovascular disease where we already have ongoing programmes across all phases of clinical development," Novo said in a statement.
The deal includes Cardior's lead compound CDR132L, currently in intermediate Phase II clinical trials for the treatment of heart failure, Novo said.
The compound is designed to halt and partially reverse the course of disease for people living with heart failure, potentially leading to long-lasting improvement in heart function, the company added.
Novo said it planned to start a second Phase II trial investigating CDR132L in people with cardiac hypertrophy, a condition that causes the walls of the heart muscle to become thick and stiff, affecting the heart's ability to pump blood.
The deal, which is expected to close in the second quarter of this year, will not impact Novo's 2024 operating profit guidance, it said.
The transaction price includes an upfront payment and additional payments if certain development and commercial milestones are achieved, the company said, adding it would fund the deal from financial reserves.
($1 = 0.9246 euros)
(Reporting by Louise Breusch Rasmussen Editing by Stine Jacobsen and Mark Potter)
