Novo Nordisk & Valo Health Expand AI-Driven Partnership for Cardiometabolic Treatments

Both companies are also investigating additional health benefits for their obesity medications to capture a larger share of the rapidly growing market, projected to reach $150 billion by the next decade.

Danish pharmaceutical giant Novo Nordisk and U.S.-based Valo Health have announced an expansion of their 2023 agreement to develop innovative treatments for cardiometabolic diseases, leveraging artificial intelligence (AI) and human data.

The collaboration aims to accelerate drug discovery and development in obesity, type 2 diabetes, and cardiovascular diseases.

Strategic Importance of the Partnership

The announcement follows a challenging trial for Novo Nordisk’s weight-loss drug candidate, CagriSema, which fell short of expectations.

The company is striving to develop a treatment superior to Eli Lilly’s Zepbound, a rival weight-loss drug.

Both companies are also investigating additional health benefits for their obesity medications to capture a larger share of the rapidly growing market, projected to reach $150 billion by the next decade.

Details of the Expanded Agreement

Initially signed in September 2023, the partnership between Novo Nordisk and Valo Health aimed to develop up to 11 drugs. Under the expanded terms, the scope has been widened to include up to 20 treatments.

Valo is set to receive near-term payments of up to $190 million and milestone payments totaling approximately $4.6 billion. This marks a significant increase from the original deal, which offered Valo up to $2.7 billion in milestone payments.

In another development, in August last year, Novo Nordisk India's nonprofit arm, Novo Nordisk Education Foundation (NNEF), partnered with the Karnataka government to combat the rising prevalence of diabetes.

Through the ‘Changing Diabetes Barometer’ (CDB) program, Community Diabetes Centres (CDCs) will be established in district hospitals, sub-district hospitals, community health centers, and primary health centers across Karnataka.

The initiative will begin with pilot projects in three districts—Bengaluru Urban, Dakshina Karnataka, and Yadgiri.

These CDCs will integrate diabetes care into outpatient consultations, focusing on early diagnosis, and treatment options, and promoting lifestyle changes.

The program also seeks to map diabetes prevalence in real-time, offering data-driven insights for better disease management.

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