Novo Nordisk Just Consolidated Its Grip on Yet Another Market. Is It a Buy?
On Oct. 16, Novo Nordisk (NYSE: NVO) announced that it planned to buy a late-stage pharmaceutical asset called ocedurenone, which it hopes to commercialize to treat uncontrolled hypertension in the context of advanced chronic kidney disease (CKD). Now, it stands to control a key and underserved share of the CKD market, and it might eventually have additional development opportunities in the market for hypertension therapies too.
But is the pharma juggernaut extending itself too far beyond its home territory of marketing medicines for obesity and type 2 diabetes? And is it still worth buying even if CKD turns out to be a market too far? Let's map out what the new acquisition means to find out.
Novo Nordisk plans to pay as much as $1.3 billion for ocedurenone. The molecule's prior developer, KBP Biosciences, already advanced it through a total of nine clinical trials, including a phase 2b trial most recently.
Source Fool.com
