Novo Nordisk Expands AI Partnership with Valo Health for Obesity Drug Development

Novo Nordisk, a leading global healthcare company, has expanded its artificial intelligence (AI) partnership with Valo Health to develop novel treatments for obesity, type 2 diabetes, and cardiovascular disease. The expanded collaboration, announced on January 8, 2025, will enable the discovery and development of up to 20 novel drug programs, an addition of 9 new drug programs to the original 11, totalling approximately 4.6 billion dollars in milestone payments, plus R&D funding and potential royalty payments.

Under the terms of the expanded agreement, Valo is entitled to receive an upfront payment, equity investment, and a potential near-term milestone payment, totalling 190 million dollars. The expanded collaboration will continue to leverage the capabilities of Valo's Opal Computational Platform™, as well as key joint capabilities in human data and genetics with Novo Nordisk's expertise in cardiometabolic diseases.

Marcus Schindler, executive vice president and chief scientific officer of Novo Nordisk, expressed his enthusiasm for the partnership: "We are very pleased with the progress we have made together with Valo during the first year of our collaboration, and we are excited to expand the scope to put a stronger focus on obesity and type 2 diabetes in addition to cardiovascular disease. We have already begun to realize the potential of combining the capabilities of Valo and Novo Nordisk to advance multiple AI-powered, human-centric programmes, and we believe this partnership will help Novo Nordisk fulfil our ambition to expand the number of new drug programmes we bring to the clinic."

Brian Alexander, CEO of Valo Health and CEO-Partner, Flagship Pioneering, also commented on the partnership: "We are excited to build off our early progress with Novo Nordisk, a global leader in obesity and diabetes therapeutics, especially given the renaissance moment in the treatment of cardiometabolic diseases. This level of investment is a testament to our close partnership in deploying human-centric artificial intelligence to rapidly discover and develop novel cardiovascular and metabolic disease therapeutics."

The collaboration has already led to the identification of several novel targets that may form the basis of differentiated cardiometabolic drug programs. The companies are actively working on multiple small molecule preclinical drug discovery programs, with activities spanning the entire drug discovery continuum. Novo Nordisk and Valo plan to continue working closely together to derive novel insights from human genetic and longitudinal patient data at the intersection of obesity, type 2 diabetes, and cardiovascular disease.



The expanded collaboration between Novo Nordisk and Valo Health reflects the growing interest in obesity as a therapeutic area. The obesity pipeline now features 124 medicines altogether, with 61 in phase 1, 47 in phase 2, 8 in phase 3, and 8 on the market. This robust pipeline reflects the industry's commitment to developing innovative treatments for obesity, further indicating the growing interest in this therapeutic area.

The success of GLP-1 drugs like semaglutide (Wegovy) and tirzepatide (Zepbound) in treating obesity has sparked a pharmaceutical weight loss frenzy. These drugs have shown significantly higher degrees of weight loss than previous treatments, and their validated safety has made them more acceptable in the commercial market. This success has contributed to the growing interest in obesity as a therapeutic area.

In conclusion, the expanded partnership between Novo Nordisk and Valo Health demonstrates the potential of AI and human-centric data in the development of obesity treatments. The collaboration has already led to the identification of novel targets and the development of multiple small molecule preclinical drug discovery programs. As the obesity pipeline continues to grow, the industry's commitment to developing innovative treatments for obesity is evident. The expanded collaboration between Novo Nordisk and Valo Health is a testament to the growing interest in obesity as a therapeutic area and the potential of AI in drug discovery.