Novo Nordisk (NVO) announced a new $2.2 billion deal with San Francisco-based biotech Sapterna (SEPN) for obesity pills — the latest in a series of moves by the Danish drugmaker as it hopes to maintain its position as one of two leaders in the hot obesity market.

Novo said Wednesday that the company agreed on an exclusive collaboration and licensing agreement for "oral small molecules for obesity, Type 2 diabetes and other cardio-metabolic diseases," which are all the areas the current GLP-1s address.

Sapterna's stock was up 64% in pre-market trading Wednesday, while Novo's traded up a little over 2%.

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The deal is the latest in a series focused on the pill market for obesity, deemed the next frontier in the race for the next generation of weight loss drugs. Novo already has an oral version of its top weight loss injectable, Wegovy, awaiting FDA approval. It could see a decision from the FDA by the end of this year.

Investors have been watching Novo's moves closely as Wegovy has begun to lose ground, based on prescription data, to competitor Eli Lilly's (LLY) Zepbound.

Novo also recently announced a $1.75 billion deal with Lexicon (LXRX) for an oral obesity treatment currently in development.Photo illustration of Wegovy and a weight scale. Wegovy is an injectable prescription weight loss medicine that has helped people with obesity. It should be used with a weight loss plan and physical activity. (Photo by: Michael Siluk/UCG/Universal Images Group via Getty Images)·UCG via Getty Images

In addition to the deals for pills, the company has also secured deals to help boost access to its drugs. Notably a deal with CVS (CVS) to be the exclusive drug on its formulary for obesity, and deals with telehealth companies like Hims & Hers (HIMS) to help reach patients willing to pay cash. The deal with CVS also includes a cash pay option, for $499 per month, about half the list price of the drug.

The deal with Septerna puts the biotech in charge through the early discovery and dosing phase, and once a lead option is chosen Novo will take over production and development. Septerna will receive $195 million up front, and up to $500 million additional for each of its four current pill candidates if they make it through early trials.

JPM analysts said in a note to clients the move was a clear boost for Septerna. The biotech had faced some setbacks in other drug candidates, and as of last year-end had $421 million in cash on hand, which would help support its operations into 2028.

"We view this morning’s pre-market move (+70%) as appropriate and remain bullish on the potential for Septerna’s platform to deliver value through small molecule solutions," the analysts said Wednesday.

Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem.

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