Novo Nordisk and Valo Health, an AI-focused biotech, have expanded their existing collaboration to discover and develop new treatments targeting cardiometabolic diseases.

The companies entered the agreement in 2023 to jointly advance as many as 11 drug programs, mainly targeting cardiovascular diseases. Under the terms, Valo was initially entitled to receive as much as $2.7 billion in milestone payments as well as R&D funding and royalty payments from Novo Nordisk.

The expanded collaboration now includes as many as 20 new drug programs and adds nine new programs in obesity, type 2 diabetes, and cardiovascular disease. Valo is eligible to receive approximately $4.6 billion in milestones, as well as R&D funding and royalties.  

Valo Health will also receive $190 million in an upfront payment, equity investment, and potential near-term milestone payment.

“We are very pleased with the progress we have made together with Valo during the first year of our collaboration,” said Marcus Schindler, NVO’s science chief, adding, “We are excited to expand the scope to put a stronger focus on obesity and type 2 diabetes in addition to cardiovascular disease.”