June 11, 2025 San Francisco & Copenhagen
In a bold strategic pivot, Novo Nordisk has entered a high-stakes drug discovery agreement with California-based Deep Apple Therapeutics. The $812 million partnership, announced Tuesday, aims to fast-track the development of next-generation oral therapies targeting GPCRs. This marks a major departure from Novo’s dependence on GLP‑1 based blockbusters like Wegovy and Ozempic.
The deal was confirmed by both companies on June 11. It was immediately reported by Reuters, Bloomberg and other major media outlets.
An AI-Powered Leap Beyond GLP‑1
Under the agreement, Deep Apple will apply its proprietary AI-driven platform to identify oral drug candidates for a specific non-in-cretin GPCR target. If successful, the therapies could help Novo reduce its over reliance on the GLP‑1 class. That category has recently shown signs of market saturation and scientific plateau.
Deep Apple’s platform combines cryo-electron microscopy (cryo-EM) with virtual compound libraries. These simulations could potentially cut traditional R&D timelines in half.
The deal arrives at a turbulent time for Novo. The company recently launched a Phase 3 trial for its dual-agonist candidate, CagriSema, but the initial data fell short of investor expectations. In the backdrop, mounting shareholder dissatisfaction – particularly from Parvus Asset Management – led to the departure of longtime CEO Lars Fruergaard Jorgensen.
Eli Lilly, meanwhile, has steadily expanded its influence in the obesity and diabetes landscape. Its therapies, Mounjaro and Zepbound, haven’t just gained approval. They have quickly become central to treatment discussions across clinics and regulatory circles. As prescriptions surged, so did Lilly’s foothold in a market that once tilted heavily in Novo’s favor.
For Novo, it is a moment of reckoning. Relying on GLP‑1-based therapies is no longer enough. To hold its ground, the company needs to move into uncharted scientific territory and rethink how it builds the next generation of medicines.
A Pattern of AI Collaborations
The Deep Apple agreement is part of Novo’s broader AI push. In recent years, the firm has inked major collaborations with Valo Health (valued up to $4.6 billion) and Septerna (a $2.2 billion deal). Both partnerships are aimed at AI-enhanced GPCR or metabolic discoveries.
The $812 million deal with Deep Apple, which includes upfront payments, milestone incentives and future royalty structures, stands as one of the largest single-asset oral drug discovery agreements in the AI-pharma space to date.
Operational Footprint
While the research and AI simulations will be handled at Deep Apple’s San Francisco facilities, clinical trials and global commercialization will remain Novo’s responsibility. Sources confirm that Novo will retain exclusive worldwide rights to any therapies that receive approval.
Investor Reactions and Market Implications
Market response to the announcement was cautiously optimistic. Novo’s shares rose slightly on the Copenhagen exchange, suggesting that the deal has injected fresh confidence into a company managing leadership transitions and intense industry competition.
“This partnership reflects a clear intention to diversify and de-risk,” said Dr. Helene Broström, a pharma analyst at Nord-Invest. “It is not just about obesity. It is about reclaiming innovation leadership.”
Looking Forward
As global pharma accelerates toward AI-powered medicine, this deal stands as a benchmark. If Deep Apple’s platform delivers, Novo may gain access to a new class of therapies that are faster to develop, easier to deliver and less vulnerable to the hormonal limitations of GLP‑1 analogs.
The race is now on not just to treat metabolic disease, but to reinvent how such drugs are discovered altogether
