Novo Nordisk AS (NVO), the maker of the weight-loss drug Wegovy, plans to acquire German drugmaker Cardiol Pharmaceuticals for up to 1.025 billion euros ($1.11 billion).

The deal includes a compound identified as CDR132L, which Cardiol is currently in Phase 2 clinical development for heart failure, as Novo Nordisk looks to expand its footprint in the cardiovascular drug industry, the companies said Monday. It was announced on .

Martin Horst Lange, Executive Vice President of Development at Novo Nordisk, said: “Having Cardiol as part of Novo Nordisk expands our cardiovascular disease project, which already has programs underway across all stages of clinical development. This will strengthen the pipeline.”

“We are impressed by the scientific research carried out by the Cardior team, especially the work on CDR132L. “It has the potential to be a first-in-class treatment aimed at people living with heart failure,” Horst Lange said in a press release.

Novo Nordisk plans to begin Phase 2 clinical trials of the drug and said the acquisition should be completed by the second quarter of 2024.

The Denmark-based drug company has seen strong stock and revenue growth since its weight loss drug Wegovy received Food and Drug Administration (FDA) approval in June 2021, and demand has surged in the last year.

So far this year, the company has invested to increase production capacity and has seen promising early results with another weight loss drug, with Phase 2 trials expected to begin later this year.

Wegovy has also shown positive effects in reducing the risk of heart attacks, and Novo Nordisk has also announced other partnerships related to cardiovascular and cardiometabolic diseases.

Novo Nordisk American deposit receipts, which have soared nearly 70% over the past 12 months, rose 0.8% to $129.82 as of around 1:05 p.m. ET Monday. The stock hit a closing high of $135.92 earlier this month.