Novo Nordisk A/S declared that it’s entered into a definitive deal to buy Corvidia Therapeutics Inc., a privately held, clinical stage company which is focused on the research and development of transformative therapies for cardio-renal diseases.
Corvidia Therapeutics’ lead candidate, ziltivekimab, a totally human antibody directed against Interleukin-6 (IL-6), is being developed to cut back the chance of major adverse cardiovascular events in chronic nephrosis (CKD) patients with atherosclerotic diseases (ASCVD) and inflammation.
Under the terms of the agreement, Novo Nordisk will buy all outstanding shares of Corvidia Therapeutics for an upfront payment of 725 million US dollars in cash. Total payments to Corvidia Therapeutics shareholders could ultimately amount to 2.1 billion US dollars in cash upon the achievement of certain regulatory and sales milestones by Novo Nordisk.
The transaction won’t impact Novo Nordisk’s previously communicated operating profit outlook for 2020. Novo Nordisk will fund the upfront payment from financial reserves and therefore the ongoing share buyback programme won’t be impacted.
The acquisition of Corvidia Therapeutics and its lead candidate, ziltivekimab, is aligned with Novo Nordisk’s strategy to expand its presence across a variety of cardiometabolic diseases that are closely linked to Novo Nordisk’s core business within diabetes and obesity. Ziltivekimab is being evaluated in an exceedingly phase 2b dose-finding clinical test in patients who have an increased risk of ASCVD with CKD and inflammation.
“We believe that ziltivekimab 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,” said Mads Krogsgaard Thomsen, executive vice president and chief science officer of Novo Nordisk.
”This acquisition recognises the important scientific work Corvidia has been doing over the last five years in cardio-renal diseases with a focus on inflammation,” said Marc de Garidel, chief executive officer of Corvidia Therapeutics. “In Novo Nordisk, we have found a partner that has deep expertise in cardiometabolic disease, a proven track record of success in conducting cardiovascular outcomes trials (CVOT), and the infrastructure to accelerate the development of ziltivekimab in order to help patients who need it most.”
The transaction is subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.
Novo Nordisk was represented by Davis Polk & Wardwell LLP as legal advisor. Corvidia Therapeutics was represented by J.P. Morgan Securities LLC as exclusive financial advisor and Goodwin Procter LLP as legal advisor.