Novo Nordisk’s $1.8bn acquisition of Emisphere Technologies: What it means for the future of oral biologics

Danish pharmaceutical giant Novo Nordisk has reached a significant milestone in the development of oral biologic therapies, agreeing to acquire US-based drug delivery innovator Emisphere Technologies for $1.8 billion. This acquisition is a strategic move to enhance Novo Nordisk’s drug delivery capabilities, particularly in the area of oral formulations of biologic drugs. The deal, which also includes the purchase of Eligen SNAC technology, positions Novo Nordisk to expand its pipeline and offer more accessible treatment options for patients.

A Partnership Years in the Making: Emisphere Technologies and Novo Nordisk

Since 2007, Novo Nordisk and Emisphere Technologies have collaborated, with the Danish pharma company leveraging Emisphere’s proprietary Eligen SNAC (Sodium N-[8-[2-hydroxybenzoyl]amino]caprylate]) technology for the oral delivery of its therapeutics. One of the most notable successes of this partnership has been the development of Rybelsus, an oral formulation of semaglutide, Novo Nordisk’s GLP-1 receptor agonist. Rybelsus, used in the treatment of Type 2 diabetes, has become a key product for the company, and the Eligen SNAC technology has played a crucial role in its formulation.

The acquisition solidifies Novo Nordisk’s position as a leader in diabetes care while also giving the company full access to Emisphere’s innovative drug delivery platform, which has the potential to revolutionize the administration of biologic medicines.

Details of the Acquisition: What Novo Nordisk is Gaining

Under the terms of the deal, Novo Nordisk will acquire the outstanding shares of Emisphere Technologies for $1.35 billion. In addition, the Danish firm will purchase the related royalty stream obligations from MHR Fund Management, the largest shareholder in Emisphere Technologies, for $450 million. This eliminates Novo Nordisk’s future royalty obligations tied to the Eligen SNAC technology, thereby providing the company with greater flexibility in using and further developing this technology for its pipeline of biologics.

Mark H. Rachesky, founder of MHR Fund Management, commented on the acquisition, highlighting the transformative potential of the Eligen technology. He stated, “MHR was an early believer in Emisphere and its proprietary Eligen drug delivery technology. Our longstanding support of the company was validated when its partnership with Novo Nordisk resulted in the development of an oral formulation for GLP-1, which we believe will be a transformative drug for the treatment of Type 2 diabetes.”

Impact on Novo Nordisk’s Biologic Pipeline

The acquisition is expected to have far-reaching implications for Novo Nordisk’s future product offerings. By acquiring the Eligen SNAC technology, the company gains the ability to extend its biologic portfolio beyond semaglutide. Mads Krogsgaard Thomsen, executive vice president and chief scientific officer at Novo Nordisk, emphasized the importance of this technology in the company’s future growth. He said, “We intend to apply and further develop the technology and use it on current and future pipeline assets with the aim of making more biologic medicines orally available for patients.”

The ability to administer biologic medicines orally represents a significant advancement in patient care, particularly for those with chronic conditions like diabetes, who often rely on daily injections for their treatment. Oral biologics not only improve patient adherence to therapy but also enhance convenience, making treatment easier to integrate into daily life.

Regulatory Approval and Future Prospects

While the deal has been agreed upon, it is subject to approval by Emisphere Technologies’ shareholders and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Once completed, this acquisition will pave the way for Novo Nordisk to fully integrate Eligen SNAC into its drug development processes, further solidifying its leadership in biologic therapies.

This acquisition follows a similar strategic move in 2020 when Novo Nordisk signed a deal worth up to $2.1 billion to acquire Corvidia Therapeutics, signaling its commitment to expanding its footprint in the cardiovascular space. With this latest acquisition of Emisphere Technologies, Novo Nordisk further strengthens its position in both the diabetes and biologics sectors.

What This Acquisition Means for the Future of Oral Biologics

Novo Nordisk’s acquisition of Emisphere Technologies is not just a financial transaction—it’s a strategic move that underscores the company’s vision for the future of medicine. By investing in Eligen SNAC technology, Novo Nordisk is positioning itself at the forefront of the growing field of oral biologics. The company’s ability to take biologic drugs, traditionally delivered via injection, and make them available in an oral form has the potential to improve millions of lives, especially for patients with chronic conditions like diabetes.

This acquisition also opens the door for further advancements in other therapeutic areas where biologics play a critical role. As the healthcare landscape continues to evolve, Novo Nordisk’s commitment to innovation ensures that it will remain a key player in the pharmaceutical industry.