BAGSVÆRD, Denmark – Novo Nordisk (NYSE:), a global healthcare company, has announced its agreement to purchase Cardior Pharmaceuticals for up to €1.025 billion, which includes both an upfront sum and contingent payments based on future milestones. This transaction is set to enhance Novo Nordisk’s expansion into cardiovascular disease therapeutics.
Cardior is recognized for its innovative work in RNA-targeted treatments to combat heart disease. The acquisition notably encompasses Cardior’s leading drug candidate, CDR132L, which is in the midst of phase 2 clinical trials for heart failure treatment.
Martin Holst Lange, executive vice president for Development at Novo Nordisk, expressed confidence in the acquisition, citing Cardior’s scientific advancements, particularly with CDR132L’s unique mechanism that may offer a breakthrough in halting or even reversing heart disease progression.
CDR132L aims to address cellular dysfunction in heart failure by inhibiting the microRNA molecule miR-132, which could lead to substantial and enduring improvements in cardiac function. Preliminary phase 1b trial results have shown promise, indicating safety, tolerance, and potential functional benefits for heart failure patients.
The ongoing phase 2 trial, HF-REVERT, is evaluating CDR132L’s efficacy in individuals with heart failure following a heart attack. Additionally, Novo Nordisk plans to launch another phase 2 trial targeting chronic heart failure patients with cardiac hypertrophy.
Cardior’s CEO, Claudia Ulbrich, MD, lauded the acquisition as a milestone for CDR132L’s development, emphasizing Novo Nordisk’s capabilities to expedite the drug’s progress toward regulatory approval.
The completion of the acquisition is contingent upon regulatory approvals and customary closing conditions, with expectations to finalize in the second quarter of 2024. Novo Nordisk has stated that this acquisition will not affect its 2024 operating profit forecast or its current share buy-back program, as the purchase will be funded through existing financial reserves.
This strategic move is part of Novo Nordisk’s effort to build a robust portfolio of cardiovascular treatments, addressing a critical area of unmet medical need and the leading cause of death worldwide. The information provided is based on a press release statement.
InvestingPro Insights
As Novo Nordisk sets its sights on expanding its cardiovascular disease portfolio with the strategic acquisition of Cardior Pharmaceuticals, the company’s financial health remains a key factor for investors to consider. With a solid track record of raising its dividend for 6 consecutive years, Novo Nordisk has demonstrated a commitment to providing shareholder value. This is further evidenced by the company maintaining dividend payments for an impressive 36 years in a row, showcasing its financial stability and reliability as an investment.
On the financial metrics front, Novo Nordisk’s revenue for the last twelve months as of Q4 2023 stands at a robust 34.4 billion USD, indicating a substantial growth of 31.26% year-over-year. The company’s gross profit margin during this period was remarkably high at 84.6%, reflecting efficient operations and a strong market position. Moreover, Novo Nordisk’s return on assets is an impressive 30.12%, pointing to effective asset utilization and profitability.
Investors should note that Novo Nordisk is trading at a high Price/Book multiple of 37.22, which may suggest a premium valuation. Nevertheless, the company’s recent performance and strategic initiatives could justify the current market pricing. For those considering an investment, there are additional InvestingPro Tips available, which provide deeper insights into Novo Nordisk’s financials, operational strengths, and market potential. Interested readers can explore these tips and more by visiting https://www.investing.com/pro/NOVOb and using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 20 additional tips listed in InvestingPro, investors have a wealth of information at their fingertips to make informed decisions.
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