Novo Nordisk entered into a definitive agreement to acquire Emisphere Technologies Inc., a drug delivery company, for $1.35 billion. The company’s proprietary technologies, such as the Eligen SNAC technology, enable oral formulations of therapeutics.

The companies have collaborated since 2007 and Emisphere’s drug delivery technology Eligen SNAC is used by Novo Nordisk under an existing licence agreement in the oral formulation of Novo Nordisk’s GLP-1 receptor agonist semaglutide, sold under the brand name Rybelsus.

As part of the transaction, Novo Nordisk will also acquire related Eligen SNAC royalty stream obligations owed to MHR Fund Management LLC, the largest shareholder of Emisphere, for $450 million.

With these acquisitions, Novo Nordisk eliminates its future royalty obligations to Emisphere and MHR and obtains full access to the Eligen SNAC technology platform thereby enabling Novo Nordisk to expand the portfolio of oral biologic pipeline assets across therapy areas.