Novo Nordisk has acquired Embark Biotech, including its lead metabolic program, and the companies entered a three-year research collaboration to discover and develop novel pharmaceuticals to treat obesity and related co-morbidities.

Under the agreement, Novo Nordisk receives the full rights to develop and commercialize the lead program, while the Embark shareholders will receive €15 million upfront in cash and are eligible to receive potential development, regulatory, and commercial milestones of up to €456 million.

The R&D collaboration with Embark provides Novo Nordisk with the option to acquire selected assets based on Embark’s discovery across several indications, including obesity and type 2 diabetes.

Brian Finan, vice president of obesity research at Novo Nordisk, said, “Novo Nordisk has been engaged in obesity research for 25 years, and we continuously search for new ways to address this serious chronic disease. We are excited about the opportunity to advance Embark Biotech’s lead program and look forward to co-creating novel treatments for cardiometabolic diseases with Embark Laboratories to complement our in-house R&D.”

Zach Gerhart-Hines, chief technology officer at Embark Laboratories, said, “There is a clear strategic fit between the novel biology we have discovered and Novo Nordisk’s expertise and focus on developing new drugs in the cardiometabolic space. We are thrilled to pass on the baton for our lead metabolic program to Novo Nordisk.”