In a major move to expand its portfolio of treatments for obesity and type 2 diabetes, Danish pharmaceutical giant Novo Nordisk has signed a partnership agreement with California-based biotech firm Septerna. The collaboration aims to develop a new class of oral medications targeting G protein-coupled receptors (GPCRs) — key proteins involved in regulating metabolism.

The agreement could be worth up to $2.2 billion for Septerna, which includes over $200 million in upfront and short-term milestone payments, along with future rewards based on research progress, product development, and commercial sales. In addition, Septerna will earn royalties on any future product revenues, The Wall Street Journal reported.

Novo Nordisk will cover all research and development costs associated with the collaboration.

Unlocking the Power of GPCRs

Septerna has built a cutting-edge platform focused on discovering and developing drugs that target GPCRs — proteins that play a crucial role in how cells receive and respond to chemical signals. Approximately one-third of all FDA-approved drugs already target GPCRs, but nearly 75% of GPCR targets remain untapped, presenting vast opportunities for innovation.

“Novo Nordisk is excited about the opportunity to develop oral small molecule medicines directed at multiple targets,” said Dr. Marcus Schindler, Chief Scientific Officer of Novo Nordisk. “Septerna has demonstrated strong capabilities in GPCR drug discovery.”

Four New Oral Drug Programs Planned

Under the deal, the two companies plan to initiate four drug discovery programs, focusing on GPCRs such as GLP-1, GIP, and glucagon — proteins that play key roles in appetite regulation, insulin secretion, and blood sugar control.

Novo Nordisk’s blockbuster injectable weight-loss drug Wegovy targets the GLP-1 receptor, while Eli Lilly’s Zepbound works on both GLP-1 and GIP. The push toward oral versions of these medications could offer patients more convenient alternatives to injections, improving compliance and simplifying logistics such as storage and transport.

Market Reaction

Following the announcement, Septerna’s stock soared by 69% in premarket trading, while Novo Nordisk saw a 1.2% rise in its European trading.

This deal marks yet another step in Novo Nordisk’s strategic investment in next-generation metabolic treatments, as the global demand for more accessible and effective obesity and diabetes medications continues to surge.