Novo Nordisk to Acquire Corvidia Therapeutics for $725M Cash

Novo Nordisk A/S NVO announced that it has agreed to buy AstraZeneca Plc’s AZN spin-off, Corvidia Therapeutics, for an upfront payment of $725 million in cash. With the acquisition, the company seeks to expand presence across a range of cardiometabolic diseases that are closely linked to Novo Nordisk’s core business within diabetes and obesity. Upon meeting some regulatory and sales milestones, Novo Nordisk will make total payments of $2.1 billion in cash to Corvidia’s shareholders.

Corvidia’s leading drug candidate, ziltivekimab, is in mid-stage clinical trials. Ziltivekimab is being evaluated in a phase IIb dose-finding study in patients who have an increased risk of atherosclerotic cardiovascular disease (ASCVD) with chronic kidney disease (CKD) and inflammation. Novo Nordisk remains optimistic about ziltivekimab and believes that the candidate has the potential to become a first- and best-in-class treatment to lower the burden of cardiovascular disease in a patient population that is at high risk of major adverse cardiovascular events. This acquisition recognizes the important scientific work Corvidia has been doing over the last five years in cardio-renal diseases with a focus on inflammation.

The transaction will not impact Novo Nordisk’s previously communicated operating profit outlook for 2020. The company will fund the upfront payment from financial reserves, without affecting the ongoing share buyback program.

Shares of the company have increased 11.3% year to date against the industry’s decline of 5.2%.

Novo Nordisk has a strong presence in the Diabetes care market with one of the broadest diabetes portfolios in the industry. However, the diabetes market is extremely crowded with players Sanofi SNY, AstraZeneca and Merck MRK.

Novo Nordisk AS Price

 

Novo Nordisk AS Price

 

Novo Nordisk AS price | Novo Nordisk AS Quote

Zacks Rank

Novo Nordisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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