By Mackenzie Tatananni

Septerna stock went through the roof after the biotech said it had landed a $2.2 billion deal to develop oral weight-loss treatments alongside Novo Nordisk.

U.S.-listed shares of Novo Nordisk, the maker of Ozempic and Wegovy, climbed 1.7% to $66.51 in early trading. Septerna stock was 53% higher at $10.30. The benchmark S&P 500 was up 0.3%.

Under the terms of the deal, Septerna is eligible to receive roughly $2.2 billion through a combination of upfront and milestone payments. The biotech is also entitled to royalties on global sales of marketed products.

The partners aim to develop small-molecule therapies for G protein-coupled receptors, which sit on the surface of cells and transmit signals to intracellular proteins. These include GLP-1, GIP, and glucagon receptors, which are common targets of obesity drugs.

Novo and Septerna said they plan to launch four development programs for potential small-molecule therapies directed at one or more GPCR targets.

Novo and its peers are setting their sights on oral GLP-1 medications to diversify their portfolios and remain competitive. The Danish drugmaker currently dominates the market for weight-loss drugs alongside Eli Lilly, the maker of Zepbound. Shares of the Novo rival were up 1.3% at $755.89 on Wednesday.

Lilly said last month that its new oral GLP-1 receptor agonist, orforglipron, had cleared a late-stage clinical trial. Orforglipron is seen as an answer to Novo's popular injectables, which are approved for the treatment of Type 2 diabetes and management of chronic weight problems.

It wouldn't be the first oral GLP-1 receptor agonist on the market. Novo's Rybelsus, a peptide-based oral semaglutide, was approved by the Food and Drug Administration back in 2019.

The FDA approved a label update for Rybelsus in 2023, allowing it to be used as an initial therapy for adults with Type 2 diabetes. While it isn't approved for weight management, many patients lose weight while taking it.

Novo has pledged to cover all research and development expenses for work done under the collaboration with Septerna. The deal is expected to close in the second quarter.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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May 14, 2025 10:28 ET (14:28 GMT)

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