Pipeline updates are highly awaited events in the pharma/biotech sector as they play an important role in deciding whether or not to invest in a particular company. Pipelines are of prime importance as far as pharma/biotech companies are concerned. These companies spend a significant amount in advancing their pipelines.
Novo Nordisk’s (NVO - Analyst Report) diabetes pipeline includes semaglutide, IDegLira, Tresiba and Ryzodeg. All four candidates are for the treatment of type II diabetes.
Novo Nordisk has a strong presence in the diabetes care market with one of the broadest diabetes portfolios in the industry. Novo Nordisk stated that it commands a 27% market share of the total diabetes care market.
Recently, Novo Nordisk joined forces with Zosano Pharma, Inc. to develop a new transdermal presentation of semaglutide, once weekly GLP-1 analogue. Under this deal, semaglutide will be administered once weekly using Zosano's microneedle patch system for the treatment of type II diabetes.
Firstly, Zosano and Novo Nordisk will carry out preclinical experiments to verify delivery of semaglutide using Zosano's microneedle patch system.
Zosano granted Novo Nordisk an exclusive global license to develop and commercialize semaglutide using Zosano's microneedle patch system. Novo Nordisk will market all products under this deal, subject to approval.
Potential payments to Zosano could total above $60 million for the first product and $55 million for every additional product. Zosano is also eligible to receive royalties on sales of products and will receive development support, as well as reimbursement of all development and manufacturing costs.
We expect the company’s diabetes candidates to continue to make progress and contribute to growth.
Novo Nordisk carries a Zacks Rank #4 (Sell). Some better-ranked players in the pharma industry include Actelion Ltd. (ALIOF - Snapshot Report) , Endocyte Inc. (ECYT - Analyst Report) and Salix Pharmaceuticals Ltd. . All three stocks carry a Zacks Rank #1 (Strong Buy).