Novo Nordisk and Valo Health Partner to develop novel Treatments

Novo Nordisk A/S and Valo Health, Inc. announced they have established a broader agreement to research and develop novel treatments for obesity, type 2 diabetes, and cardiovascular disease, utilizing Valo’s vast human dataset and AI-driven computations.

The firms initially collaborated in September 2023 under an agreement enabling the creation of as many as 11 drug programs, mainly targeting cardiovascular disease, with Valo eligible for up to 2.7 billion US dollars in milestone payments, along with research and development funding and possible royalty payments.

According to the expanded agreement, Valo is set to receive an initial payment, equity investment, and a potential near-term milestone payment, amounting to 190 million dollars, and is now eligible for milestone payments for as many as 20 drug programs, which includes an addition of 9 new drug programs, summing up to around 4.6 billion dollars, in addition to R&D funding and possible royalty payments.

“We are very pleased with the progress we have made together with Valo during the first year of our collaboration, and we are excited to expand the scope to put a stronger focus on obesity and type 2 diabetes in addition to cardiovascular disease,” said Marcus Schindler, executive vice president and chief scientific officer of Novo Nordisk. “We have already begun to realize the potential of combining the capabilities of Valo and Novo Nordisk to advance multiple AI-powered, human-centric programmes, and we believe this partnership will help Novo Nordisk fulfil our ambition to expand the number of new drug programmes we bring to the clinic."