Novo Adds $1.9 Billion to Valo Deal for AI-Driven Obesity Drugs

Novo Nordisk A/S is expanding a drug-development deal with Valo Health to use artificial intelligence to seek new medicines for obesity and diabetes, pledging an additional $1.9 billion to the partnership.

Valo will now get up-front and near-term milestone payments of $190 million and is eligible for as much as $4.6 billion in the longer term, including potential milestones for as many as 20 experimental drug programs. The original deal, announced in September 2023, had focused on cardiovascular disease and been worth as much as $2.7 billion for 11 programs.

Novo, the maker of blockbusters Ozempic and Wegovy, has been ...