A London-based biotech developing a rival treatment to Novo Nordisk’s Ozempic, has secured a landmark $410m (£333.5m) Series A round as investors pour cash into weight loss research.

Incorporated in 2024, Verdiva Bio has skyrocketed to a valuation estimated by Dealroom of up to $2.5bn. 

Verdiva is launching with a portfolio of oral and injectable treatments. Its flagship project is an obesity and weight loss maintenance drug that it hopes will rival the massive success of Ozempic, a weight loss injection developed by Danish group Novo Nordisk that has generated tens of billions in sales. 

Giving the newly launched UK-headquartered group a head start, Verdiva acquired the global development and commercialisation rights of a weight loss treatment from Chinese firm Sciwind Biosciences. 

“Our most mature program has the potential to be a first-in-class, once-weekly oral treatment for obesity and weight loss maintenance that could dramatically improve patient access and affordability,” said CEO Khurem Farooq. 

“People living with obesity and its complications deserve better options at each stage of their treatment journey, including oral therapies with less frequent dosing regimens, the potential for improved efficacy and tolerability, and innovative combination therapies in pursuit of healthier weight loss and, equally importantly, maintenance of metabolically healthy weight.” 

The success of Ozempic has demonstrated an insatiable appetite for weight loss drugs. The US FDA approved the use of the drug in December 2017. Since then, Novo Nordisk’s share price has increased by almost 300%. Now with a market cap of over £300bn, Novo Nordisk has become Europe’s most valuable company.

Farooq was previously the CEO of Californian health tech Aiolos Bio, worth $1bn, and London’s Gyroscope Therapeutics, which was acquired in 2021 by Novartis at a valuation of $1.5bn. 

Farooq is bringing with him three former C-suite executives from Aiolos Bio including former chief scientific officer Dr Jane Hughes, former chief business officer Dr Tapan Maniar and former CTO Ashley Taylor. 

Also joining the senior leadership team is Dr Mohamed Eid, former head of clinical development at German pharmaceutical giant Boehringer Ingelheim, who will serve as Verdiva’s chief medical officer. 

“We are excited by the potential of our innovative, investigational medicines. These programs represent next-generation potential against multiple targets and are anticipated to improve treatment adherence and offer a more sustainable solution for maintaining weight loss,” Eid said. 

“Furthermore, by applying our clinically validated, oral delivery technology, we are confident that we can deliver highly efficacious and well-tolerated therapies at markedly lower doses.” 

The Series A round was co-led by Forbion and General Atlantic. 

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