Novo Nordisk Expands its Portfolio

Novo Nordisk is set to Acquire Emisphere

Emisphere a drug delivery company with proprietary technologies such as the Eligen SNAC technology will be acquired by Novo Nordisk at a whooping $1.8 billion. A significant connection does exist between the two companies dating back to 2007. The Eligen SNAC is a good demonstration of this connection as it is used in the Oral formulation of Novo Nordisk’s GLP-1 receptor antagonisr Rybelsus (Semalglutide).

The agreements for acquisition stipulate that. All outstanding shares of Emisphere are worth for $1.350 billion and Eligen SNAC related royalty stream obligations owed to MHR Fund Management LLC, the largest shareholder of Emisphere amounting to $450 million resulting in a total of $1.8 billion will be acquired by Novo Nordisk

The companies acknowledge that the acquisition will have a no negative impact on operational profit of less than one percent in the coming year and broadly neutral to positive impact in the years to come.

This acquisition shall provide Novo Nordisk complete ownership of Emispehere most prized technology, the Eligen SNAC which has only been used by Novo Nordisk under a licence agreement to develop Rybelsus the first oral biologic. The intentions are to further develop the technology and use it on current and future pipeline assets with the aim of making more biologic medicines orally available for patients consumption.

The basis for closure of this deal rests on the conditions created by Emisphere shareholders and the expiration or termination of the waiting period under the Hart-Scott-Rodino antitrust Improvements Act of 1976. MHR and certain other shareholders of Emisphere, collectively owning a majority of the Emisphere shares, have agreed to vote their shares in favour of the transaction.

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