Inversago Acquired By Novo Nordisk as Weight Loss Drug Race Surges Forward

Key takeaways

• Novo Nordisk is buying Inversago Pharmaceuticals, which has pioneered a new weight loss treatment in early development
• Novo Nordisk raised its full-year guidance after sales for Wegovy and Ozempic surged
• The company’s share price has gained 32% since the start of 2023

Consumers — and Wall Street — can’t get enough of the new weight loss drugs hitting the shelves. That’s why weight loss drug producer Novo Nordisk has agreed to acquire Inversago Pharmaceuticals, which has its own promising new weight loss treatment, for up to $1 billion. Here’s what we know so far.

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What’s the Inversago news?

Danish Big Pharma company Novo Nordisk has announced it’s buying Canadian weight loss specialist business Inversago Pharma for just over $1 billion. The deal is expected to complete in 2023, pending unspecified development targets being reached.

Inversago has developed drug therapies for overweight and obese individuals and those with diabetes and other metabolic disorders. The jewel in the crown is INV-202, a cannabinoid receptor blocker which has been effective for weight loss in initial trials and is now in the second stage of development.

Martin Holst Lange, Novo Nordisk’s executive vice president for development, said in a statement, “This promising class of medicine pioneered by the Inversago team could lead to life-changing new treatment options for those living with a serious chronic disease and, in particular, may offer alternative or complementary solutions for people living with obesity”.

How did Wall Street react?

Novo Nordisk develops Wegovy and Ozempic, the diabetes treatments that were being covertly used by celebrities as an effective weight loss aid. Wegovy and Ozempic are hormone-based treatments, so the Inversago acquisition is another string to Novo Nordisk’s bow.

Inversago is a privately owned company, but Novo Nordisk’s shares were flat at the news. That’s likely because the week’s big news was that Wegovy also reduces the risk of heart attacks and strokes by 20%; the news sent the stock soaring 17% to a record high.

Novo Nordisk’s Q2 earnings revealed some of the potential for the weight loss drugs, should they succeed. Demand for Novo Nordisk’s obesity treatments climbed 157% for the second quarter, while the company raised its full-year guidance based on its current sales trajectory. The stock has gained 32% since the start of 2023.

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