Why Novo Nordisk (NVO) Is Buying Forma Therapeutics (FMTX) For $1.1 Billion

By Amit Chowdhry ● Sep 1, 2022
  • Novo Nordisk (NYSE: NVO) is buying Forma Therapeutics, Holdings Inc (Nasdaq: FMTX) for $1.1 billion. This is why.

Deal terms: Novo Nordisk and Forma Therapeutics announced that they have entered into a definitive agreement under which Novo Nordisk will acquire Forma Therapeutics for $20 per share in cash, which represents a total equity value of $1.1 billion.

The deal will not impact Novo Nordisk’s previously communicated operating profit outlook for 2022 or the ongoing share buy-back program. And Novo Nordisk will fund the acquisition from financial reserves.

What Forma does: Forma Therapeutics is a clinical-stage biopharmaceutical company focused on transforming the lives of patients with sickle cell disease (SCD) and rare blood disorders.

Acquisition benefits: The acquisition of Forma Therapeutics, including its lead development candidate, etavopivat, is aligned with Novo Nordisk’s strategy to complement and accelerate its scientific presence and pipeline in hemoglobinopathies, a group of disorders in which there is abnormal production or structure of the hemoglobin protein in the red blood cells.

About etavopivat: Etavopivat, an investigational oral, once-daily, selective pyruvate kinase-R (PKR) activator, is being developed to improve anemia and red blood cell health in people with SCD, a seriously debilitating, life-threatening and life shortening disease. And etavopivat is currently being evaluated in a global phase 2/3 clinical trial (Hibiscus) in patients with SCD, and in a phase 2 trial (Gladiolus) in patients with transfusion-dependent SCD and another inherited hemoglobinopathy called thalassemia.

KEY QUOTES:

“Novo Nordisk has worked for more than 40 years to develop and deliver transformative medicines to patients around the world with rare and devastating diseases. By adding Forma’s differentiated approach to address unmet needs for patients, we are taking a step forward in enhancing our sickle cell disease pipeline. We have an ambition to build a leading portfolio with standalone and combination treatments to tackle the complications and underlying causes of sickle cell disease.”

— Ludovic Helfgott, executive vice president and head of Rare Disease at Novo Nordisk

“Today’s announcement is an exciting milestone that accelerates Forma’s purpose to transform the lives of patients with sickle cell disease and other serious hematological diseases. Novo Nordisk will partner closely with the sickle cell community to amplify our impact for patients around the world who urgently need new treatment options. We look forward to working together with Novo Nordisk to serve as a trusted partner to our communities and to advance innovation, access and health equity for patients.”

— Frank D. Lee, president and chief executive officer of Forma