The agreement includes provisions requiring certain TransCon technology-based products to be identified and advanced in metabolic diseases to maintain exclusivity in the field and additional provisions for cardiovascular diseases.

Under the terms of the agreement, Novo Nordisk also receives exclusive rights to expand any resulting metabolic disease products into other therapeutic areas. The lead program in the collaboration is a once-monthly GLP-1 receptor agonist product candidate that will initially target obesity and type 2 diabetes.

Based on this agreement, Ascendis will receive up to $285 million in upfront, development, and regulatory milestone payments for the lead program, complemented by sales-based license fees. For each additional metabolic or cardiovascular disease product candidate, Ascendis said it will be eligible to receive payments of up to $77.5 million in development and regulatory milestone payments, plus sales-based milestone payments and tiered royalties on global net sales.

Under the collaboration, Ascendis will conduct the early development of TransCon product candidates while Novo Nordisk will be responsible for the early development costs and for clinical development, regulatory, commercial manufacturing, and commercialization.

Jan Mikkelsen, Ascendis Pharma’s president and CEO. “The agreement with Novo Nordisk reflects our Vision 2030 to create value in additional large therapeutic areas outside endocrinology rare disease through collaborations with established global leaders.”

Brian Vandahl, senior vice president of Global Research Technologies at Novo Nordisk, commented: “We look forward to working with Ascendis to explore the potential of the TransCon technology platform to reduce the dosing frequency of GLP-1 receptor agonists and other treatments for cardiometabolic diseases.”

The closing of the transaction, which is subject to receipt of applicable regulatory approvals, is expected to close before the end of 2024.