Novo Nordisk has agreed to acquire Emisphere Technologies, a Roseland, New Jersey-based drug-delivery company, for $1.8 billion.

Novo Nordisk and Emisphere have collaborated since 2007. Emisphere’s drug-delivery technology, Eligen SNAC, is used by Novo Nordisk under an existing license agreement in the oral formulation of Novo Nordisk’s Rybelsus (semaglutide), a prescription medicine for treating Type 2 diabetes.

Under the agreement, Novo Nordisk will acquire all outstanding shares of Emisphere for $1.350 billion. As part of the transaction, Novo Nordisk will also acquire related Eligen SNAC royalty stream obligations owed to MHR Fund Management (MHR), the largest shareholder of Emisphere, for $450 million. The total acquisition price is $1.8 billion.

With these acquisitions, Novo Nordisk eliminates its future royalty obligations to Emisphere and MHR and obtains full access to the Eligen SNAC technology platform.

The transaction is subject to customary closing conditions, including approval by Emisphere shareholders and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. MHR and certain other shareholders of Emisphere have agreed to vote their shares in favor of the transaction.

Source: Novo Nordisk and Emisphere Technologies