Nanexa Shares Rise 114% Following $1.3B Licensing Agreement with Novo Nordisk

Swedish drug-delivery firm Nanexa saw its shares climb more than 110% in early Friday trading after announcing a global licensing agreement with Novo Nordisk. The deal is valued at up to $1.3 billion and focuses on using Nanexa’s proprietary technology to develop long-acting obesity and diabetes treatments.

"With this agreement, Nanexa enters a new era of considerable financial strength, allowing us to significantly expand applications of our unique atomic layer deposition technology to other therapeutic areas and giving us an opportunity to build a sustainable long-term business," said Nanexa chair Göran Ando.

Financial Terms and Licensing Scope

The agreement grants Novo Nordisk an exclusive worldwide license to apply the PharmaShell platform to five development programs. These programs focus on treating type 2 diabetes, obesity, and related cardiometabolic conditions.

Under the terms of the deal, Nanexa will receive approximately $700 million in upfront payments. The total potential value of $1.3 billion includes additional milestone payments and low-single-digit royalties on net sales of products brought to market using the technology.

How PharmaShell Works

PharmaShell uses atomic layer deposition (ALD), which is a thin-film coating technique applied in the semiconductor industry. Nanexa uses ALD to coat drug particles with a protective, biodegradable shell. This control over coating thickness allows for a predictable and sustained release of medication.

Many of Novo Nordisk's current treatments require weekly injections. This collaboration aims to use PharmaShell to develop formulations that extend the dosing interval to monthly or quarterly injections, which may improve patient adherence and treatment convenience.

Strategic Outlook for Nanexa

For Nanexa, the partnership provides capital to scale its operations beyond this licensing agreement. The company intends to use these resources to advance its internal pipeline toward clinical proof of concept.

"The agreement provides a strong foundation for expanding PharmaShell into additional therapeutic areas and to selectively advance additional internal programs towards clinical proof of concept, allowing us to capture greater value from the breadth of the PharmaShell platform," said Nanexa CEO David Westburg.