Novo Buys Embark Biotech to Find New Avenues for Weight Loss

Novo Nordisk A/S agreed to buy Embark Biotech, a Danish company working on appetite suppression, for up to €471 million ($512 million) as it seeks to retain its edge in the booming field of weight loss.

Shareholders of the closely held Embark Biotech will receive €15 million upfront and stand to gain as much as €456 million in potential milestone payments if a product advances through clinical trials and makes it to market, Novo said in a statement. The announcement also includes a three-year research and development collaboration agreement.

Novo has helped power the Danish economy as its medicines ...