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novo nordisk (NGO – Free Report) announced that it will acquire Cardiol Pharmaceuticals for up to 1.025 billion euros, with the aim of strengthening its cardiovascular disease pipeline.

The purchase price includes an upfront payment and additional milestone payments if certain development and commercial milestones are achieved. The acquisition is expected to close in the second quarter of 2024.

Cardior develops treatments that target RNA to prevent, repair, and reverse heart disease. The deal includes Cardior’s lead compound CDR132L, which is in development for the treatment of heart failure.

CDR132L is designed to halt and partially reverse cellular pathology by selectively blocking abnormal levels of the microRNA molecule miR-132, which may lead to long-term improvements in cardiac function. there is.

The candidate was reported to be safe and well-tolerated, according to results from a Phase Ib trial published in the European Heart Journal, which showed improved cardiac function in patients with heart failure compared to a placebo. Suggests.

The Phase II study HF-REVERT is ongoing in 280 patients with heart failure with reduced ejection fraction (HFrEF) who have had a previous heart attack (myocardial infarction). The first patient was dosed in the HF-REVERT study in July 2022.

NVO plans to begin a Phase 2 clinical trial evaluating CDR132L in a population of chronic heart failure patients with cardiac hypertrophy, in which the walls of the heart muscle become thick and stiff, affecting the heart’s ability to pump blood.

The acquisition will be funded using financial reserves and will not affect the Company’s 2024 operating profit outlook or its ongoing share repurchase program.

This acquisition will diversify NVO’s portfolio beyond diabetes and obesity treatments.

Novo Nordisk’s stock has increased by 66.8% over the past year compared to the industry’s growth rate of 27.3%. This surge is largely due to the impressive performance of NVO’s obesity drugs Wegovy (semaglutide 2.4mg) and Ozempic.

Zacks Investment Research
Image source: Zacks Investment Research

In 2023, Wegovy generated sales worth DKK 31.3 billion, registering year-on-year growth of 407% on a reported basis and 420% at constant exchange rates.

Earlier this month, the FDA announced Wegovy’s label expansion to reduce the risk of serious cardiovascular adverse events, including cardiovascular death, nonfatal heart attack, and stroke in adults who are overweight or obese and have cardiovascular disease. Approved NVO’s additional new drug application seeking. .

Merger and acquisition transactions in the pharmaceutical and biotech space have recently intensified as major pharmaceutical and biotech companies seek to diversify their portfolios in the face of generic competition for key drugs.

AstraZeneca (AZN – Free Report) recently announced the acquisition of a clinical-stage biopharmaceutical company. fusion pharmaceuticals (Fusun – Free Report), with a total consideration of $2.4 billion.

The acquisition of Fuison will add next generation radioactive conjugates, a promising therapy in cancer treatment, to AZN’s oncology pipeline. Fusion’s lead clinical-stage pipeline candidate, FPI-2265, is a potential new treatment for patients with metastatic castration-resistant prostate cancer and is currently in Phase II trials.

Zacks Rank and Stocks to Consider

Novo Nordisk currently carries a Zacks Rank #3 (Hold).

The top stocks in the healthcare sector are ADMA Biologics. (ADMA – Free Report) currently sports a Zacks Rank #1 (Strong Buy).You can view See the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, ADMA Biologics’s 2024 earnings per share estimate has improved from 22 cents to 30 cents. Over the past year, ADMA stock has increased 92.4%.

ADMA Biologics’ earnings exceeded estimates in 3 of the trailing four quarters and once, delivering an average surprise of 85.00%.



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