Shares of Septerna, Inc. surged 69% following the announcement of an exclusive global collaboration and license agreement with Novo Nordisk (NYSE:NVO) to develop oral small molecule medicines for obesity and other cardiometabolic diseases. The partnership leverages Septerna’s G protein-coupled receptor (GPCR) drug discovery expertise with Novo Nordisk’s experience in obesity and cardiometabolic diseases.

The companies will kick off four development programs targeting GPCRs, including GLP-1, GIP, and glucagon receptors, which are critical for metabolic regulation. Under the agreement, Septerna could receive up to approximately $2.2 billion, including over $200 million in upfront and near-term milestone payments. Additionally, Septerna will be eligible for tiered royalties on global net sales of marketed products.

This strategic move has been met with investor enthusiasm, as evidenced by the significant uptick in Septerna’s stock price. The collaboration is poised to combine the scientific and technical strengths of both companies to address a significant market need in the treatment of metabolic diseases.

The collaboration’s financial terms are substantial, with Septerna set to receive a sizable upfront sum, further milestone payments, and royalties, highlighting the potential value Novo Nordisk places on Septerna’s GPCR platform and expertise. The deal also provides Septerna with the operational flexibility to advance its diverse portfolio of other GPCR-targeted programs.

GPCRs are a vast and varied group of cell membrane receptors integral to many physiological processes. Septerna’s Native Complex Platform™ aims to exploit this class of receptors, which remains largely untapped despite being historically productive in drug discovery.

The agreement is expected to close in the second quarter of 2025, pending the satisfaction of customary closing conditions, including the Hart-Scott-Rodino Antitrust Improvements Act of 1976 waiting period expiration or termination.

Investors have reacted positively to this news, recognizing the potential for Septerna to make significant advancements in the treatment of obesity and related cardiometabolic conditions, a market with a growing demand for innovative therapies.