Novo Nordisk Makes $2.1 Billion Rare-Disease Bet After Losing Ground in Obesity Race
This article was first published on: GuruFocus.
Novo Nordisk (NYSE:NVO) energetic It was quick to regain momentum by making strategic deals, agreeing to pay as much as $2.1 billion for the rights to Omeros Corp.’s experimental rare disease drug. The Danish drugmaker will pay $340 million upfront and in the short term, with the remainder dependent on future development and commercialization. The drug zaltenibart targets rare blood and kidney disorders and will enter late-stage trials for paroxysmal nocturnal hemoglobinuria (PNH), a condition in which the immune system mistakenly destroys red blood cells.
Investors reacted immediately. Omeros shares nearly tripled by 143% to $9.95 in trading in New York, while Novo Nordisk gained nearly 1% in Copenhagen. The transaction marks Novo’s second deal this month and underscores its intention to strengthen its product pipeline beyond obesity drugs like Ozempic. The company has stepped up acquisitions after losing ground in the rapidly evolving weight-loss market, and the move could help diversify its long-term growth drivers.
Novo Nordisk CEO Mike Doustdar recently said calculated risks and bold partnerships may be necessary to advance in a competitive industry. With zaltenibart, Novo is not only acquiring a potential rare disease blockbuster, it’s showing investors that innovation and deal-making are at the heart of its strategy to sustain growth and defend market leadership.
