Novo Nordisk bets $550M on RNA tech to revive obesity, diabetes drug pipeline

Novo Nordisk has partnered with Replicate Bioscience in a deal worth up to $550 million to develop next-gen treatments for obesity, Type 2 diabetes, and other cardiometabolic diseases using self-replicating RNA (srRNA) technology.

Why it matters: Novo is losing market dominance in GLP-1 drugs to Eli Lilly and faces mounting pressure to innovate. This deal aims to rejuvenate its early-stage pipeline and reclaim leadership in the obesity and diabetes space.

Backstory: Once dominant in GLP-1 therapies, Novo has recently fallen behind. Market setbacks led to the CEO’s ousting, dropped pipeline assets, and a downgraded 2025 sales outlook. Its GLP-1 market position has eroded due to Eli Lilly’s rise and generic competition.

Big picture: The srRNA platform allows drugs to be produced inside patients’ cells at lower doses, potentially transforming how cardiometabolic diseases are treated. This collaboration is part of a broader RNA push by Novo, including a recent $2.2B deal with Septerna and the $3.3B acquisition of Dicerna in 2021.

Zoom in: Novo gets exclusive global rights to any therapies developed from the partnership, while Replicate will earn royalties and milestone payments beyond the upfront fee.