Novo Nordisk pays $800m for start-up’s diabetes tech platform

Novo Nordisk has bought a University of Bristol spin-out company for $800 million, in a deal which could transform the way diabetes is treated.

The University of Bristol, based in the UK, announced the news on Friday, August 17.

Danish healthcare company Novo Nordisk works to treat serious chronic conditions such as haemophilia and growth disorders, with a particular focus on diabetes.

The World Health Organization estimates that more than 382 million people worldwide have diabetes, a metabolic disorder that affects blood sugar levels.

Novo’s acquisition of Bristol-based Ziylo could lead to the development of the world’s first glucose-responsive insulin, transforming the treatment of diabetes, the university said.

Ziylo has developed a technology platform which could enable insulin to react and adapt to glucose levels in the blood, reducing the risk of low blood sugar and enabling people with diabetes to have better metabolic control.

The synthetic glucose-binding molecules used by Ziylo’s platform were developed by Professor Anthony Davis at the University of Bristol. Davis co-founded Ziylo in 2014.

Professor Nishan Canagarajah, pro vice-chancellor for research at the university, said: “The acquisition of Ziylo by Novo will allow this technology to take the next leap forward.”

Novo said it will use the glucose-binding platform for therapeutic and diagnostic applications.

Marcus Schindler, senior vice president of global drug discovery of Novo, said: “We believe the glucose-binding molecules discovered by the Ziylo team, together with Novo world-class insulin capabilities, have the potential to lead to the development of glucose-responsive insulins.”

Novo has acquired all shares in Ziylo for an upfront sum, with contingent milestone payments to follow. Total payments under the agreement could exceed $800 million depending on the sales and regulatory milestones.

Did you enjoy reading this story?  Sign up to our free daily newsletters and get stories sent like this straight to your inbox.