Valo Health and Novo Nordisk have announced an expansion of their collaboration to advance the discovery and development of innovative therapies targeting obesity, type 2 diabetes, and cardiovascular disease.
This enhanced partnership significantly broadens the scope of their original agreement established in 2023. The revised deal now covers up to 20 new drug programs, reinforcing efforts to address key cardiometabolic conditions.
As part of the expanded collaboration, Valo will receive near-term payments amounting to up to $190 million. In addition, the company stands to gain approximately $4.6 billion in milestone payments for successfully advancing the drug programs, along with research and development (R&D) funding and potential royalties.
Initially formed in September 2023, the partnership set out to develop up to 11 drug programs, mainly focused on cardiovascular treatments. At that time, Valo was eligible for milestone payments of up to $2.7 billion, alongside R&D funding and royalties.
With the updated agreement, Valo is set to receive an upfront payment, equity investment, and a near-term milestone payment totaling $190 million. The expanded deal increases the number of potential drug programs from 11 to 20, unlocking further milestone payments and additional funding opportunities.
The collaboration continues to utilize Valo’s AI-driven Opal Computational Platform, combining advanced computational techniques with human data and genetics. Novo Nordisk brings extensive expertise in cardiometabolic diseases, creating a powerful partnership aimed at developing breakthrough therapies.
Also read: Bristol Myers Squibb Reports Positive Results from Phase 3 Trials of Deucravacitinib in Psoriatic Arthritis
The alliance has already identified several promising drug targets that could lead to novel cardiometabolic treatments. Preclinical discovery efforts are currently underway, focusing on small molecule therapies.
Novo Nordisk and Valo remain committed to harnessing human genetic data and longitudinal patient information to gain deeper insights into the intersection of obesity, type 2 diabetes, and cardiovascular conditions. Through this expanded collaboration, both companies aim to accelerate the development of next-generation treatments for patients worldwide.
Comments