New Deal Between Emisphere Technologies Inc. (EMIS) and Novo Nordisk A/S (ADR) (NVO)

On October 15, Emisphere Technologies Inc. (OTCMKTS:EMIS) announced an agreement with Novo Nordisk A/S (ADR) (NYSE:NVO) to develop and market oral formulations of four classes of the Danish company’s investigational molecules targeting metabolic disorders such as diabetes and obesity by utilizing Emisphere’s oral Eligen Technology. Let’s not forget to mention that Mark Rachesky’s MHR Fund Management LLC owns 81.18 million shares of Emisphere Technologies, which account for a whopping 65.8% of the company’s common stock.

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The aforementioned deal stipulates that Emisphere licensed to Novo Nordisk the exclusive right to develop product candidates in three of the four molecule classes and the non-exclusive right in the remaining one using its technology. Under the terms of the agreement, Emisphere is set to receive $5.0 million as an upfront licensing fee, but can also collect up to $62.5 million in development and sales milestone payments for each of the exclusively-licensed molecule classes and up to $20 million for the remaining molecule class. In addition, Emisphere will receive royalties on potential sales of the “soon-to-be” commercialized products. Ultimately, the two parties also amended their existing license agreement for Novo Nordisk’s GLP-1 analogue semaglutide. As a result, Emisphere Technologies Inc. (OTCMKTS:EMIS) will receive a payment of $9.0 million in exchange for a reduction in future royalty payments.

Let’s turn the page, where you can take a look at the hedge fund sentiment on Novo Nordisk and at other developments at the company.