Sweden — Shares in Swedish drug-delivery company Nanexa more than doubled on Friday after it announced a global licensing agreement with Novo Nordisk worth up to €1.17 billion ($1.33 billion).
The agreement centers on Nanexa’s PharmaShell technology and is intended to support the development of long-acting injectable medicines for obesity, type 2 diabetes and other cardiometabolic diseases.
Under the terms of the deal, Novo Nordisk will have exclusive rights to use PharmaShell in as many as five development programs.
Nanexa’s technology involves applying an ultra-thin coating around drug particles. The coating is designed to regulate how quickly medicine is released over time, potentially reducing how often treatments need to be administered.
The companies are seeking to develop formulations that could be given monthly or quarterly instead of requiring more frequent injections.
Investors reacted sharply to the announcement. Nanexa shares were up approximately 122% at 0723 GMT, reaching their highest level in more than five years.
The agreement provides Nanexa with an upfront payment, along with development and regulatory milestones totaling €615 million. Further payments will be tied to sales milestones for products developed through the partnership.
Nanexa will also receive royalties in the low single-digit percentage range based on global sales of products developed under the agreement.
Novo Nordisk will take responsibility for the worldwide development and commercialization of products included in the partnership.
The deal comes as pharmaceutical companies continue working on longer-acting treatments for chronic diseases such as obesity and diabetes.
Reducing the number of injections required can be an important consideration for patients and healthcare providers managing long-term treatment. The companies are consequently exploring formulations designed to keep medicines effective for longer periods.
For Nanexa, the agreement marks a major commercial deal for its drug-delivery platform and prompted an immediate change in the market’s valuation of the company.
For Novo Nordisk, the partnership provides access to technology that could potentially be used across several development programs rather than being limited to one drug.
Because the agreement covers up to five programs, its ultimate financial value will depend on development outcomes, regulatory progress and eventual product sales.
Nanexa shares remained at levels not seen in more than five years after the announcement.
The agreement highlights how smaller biotechnology and drug-delivery companies can partner with larger pharmaceutical companies to advance specialized technologies while maintaining an economic interest through milestone payments and royalties.
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