Novo signs $1.4bn deal with Orbis to create new oral treatments

Novo has signed a drug discovery and licensing deal with Orbis Medicines worth up to $1.4bn.

The partnership will focus on new oral treatments for cardiometabolic diseases and combines Novo’s expertise in the area with Orbis’ AI-powered drug discovery platform. The companies hope to develop oral drugs for targets that have traditionally required injectable treatments.

Turning injections into pills

Privately held Orbis specialises in synthetic macrocycles, ring-shaped molecules that can target proteins which are difficult to reach with traditional small-molecule drugs. Its nGen platform uses AI to design and test these molecules.

The aim is to create medicines that have the targeting abilities of larger molecules but can still be taken orally which could open the door to more pill-based treatments for chronic diseases.

Orbis, who’s synthetic macrocycles have achieved oral bioavailability of up to 18% according to it’s CEO Morten Graugaard, has already reported promising preclinical results. Oral bioavailability refers to how much of a swallowed drug reaches the bloodstream.

Graugaard said: “Together with Novo, we have an opportunity to unlock a new generation of oral medicines for cardiometabolic diseases and ​demonstrate the transformative ​potential of ⁠AI-enabled macrocycle drug discovery.”

The deal will allow Orbis to test its technology across several cardiometabolic targets and will also give the biotech access to Novo’s experience in diabetes, obesity and related diseases.

Under the agreement, Orbis will receive upfront and milestone payments and could also later receive tiered royalties on future product sales.

Novo will make a strategic investment in Orbis as part of the deal, although the companies have not disclosed the size of the investment. The full financial breakdown of the potential $1.4bn agreement has also not been revealed.

Novo pushes further into oral treatments

For Orbis, the partnership offers a chance to validate its technology with a major pharmaceutical company while for established drugmaker Novo, it adds another approach to its growing work in oral medicines.

The deal comes as pharma companies look for more convenient alternatives to injectable drugs, something particularly important for patients with chronic diseases who may need to stay on treatment long term.

Novo already has experience turning peptide medicines into pills. Its oral GLP-1 drugs use technology designed to help the medicine cross the gastrointestinal barrier and reach the bloodstream.

Other pharma companies are also exploring macrocyclic medicines.

Johnson & Johnson secured US approval for an oral macrocyclic peptide for plaque psoriasis earlier this year while Merck has also gained approval for an oral macrocyclic peptide designed to lower cholesterol.

The Orbis deal gives Novo another route into this growing field. It also puts Orbis’ AI-led platform to the test in one of pharma’s biggest therapeutic markets.

Featured image: Akbar Hossain on AdobeStock