Zealand Pharma partners with Generate Biomedicines in US$1.2B protein drug development deal
The agreement also includes US$35 million in preclinical milestone payments, with additional development and commercial milestones bringing the total potential deal value to nearly US$1.2 billion.
DENMARK/USA—Zealand Pharma and Generate Biomedicines have entered into a collaboration to develop AI-designed protein therapies for obesity and other metabolic diseases, in a deal worth up to US$1.2 billion that expands Zealand’s drug development capabilities.
Zealand Pharma will pay Generate Biomedicines US$30 million upfront for two initial research programmes.
The agreement also includes US$35 million in preclinical milestone payments, with additional development and commercial milestones bringing the total potential deal value to nearly US$1.2 billion.
Generate will also receive royalties on sales of the resulting therapies, and Zealand has an option to add a third programme.
The companies have not disclosed the specific biological targets of the collaboration.
However, the candidates will be multispecific proteins designed to interact with multiple biological targets and may offer new approaches to treating complex metabolic conditions.
The partnership broadens Zealand’s portfolio beyond its existing small molecule and peptide capabilities.
It also reflects growing interest in applying artificial intelligence (AI) to protein design, particularly in drug discovery programmes that seek to develop therapies with specific biological functions.
AI platform to support drug discovery
Generate Biomedicines will use its generative AI platform to design and identify potential drug candidates.
The company draws on its analysis of millions of proteins to develop new medicines with targeted therapeutic properties.
Under the agreement, Zealand will take responsibility for subsequent clinical development, regulatory submissions and global commercialisation.
This division of responsibilities combines Generate’s computational protein design capabilities with Zealand’s expertise in metabolic diseases and drug development.
Zealand’s Chief Scientific Officer, Uptal Singh, said the collaboration would expand the company’s capabilities to include proteins alongside small molecules and peptides.
He added that the partnership would support new approaches to polypharmacology, which involves designing therapies to influence multiple biological targets or pathways.
Singh said the agreement also connects Zealand’s metabolic disease expertise in Copenhagen, Denmark, with Generate’s capabilities in Cambridge, Massachusetts, to develop new treatments for metabolic health.
Existing pharmaceutical partnerships
Founded in 2018 by Noubar Afeyan, Molly Gibson and Gevorg Grigoryan, Generate Biomedicines has built a pipeline spanning oncology, immunology and other therapeutic areas.
Its most advanced immunology candidate, GB-0895, is being evaluated in a Phase III trial for severe asthma, while other programmes remain in Phase I development.
Afeyan also co-founded Moderna and serves on its board. Generate a completed US$400 million initial public offering in February 2026.
The company has previously attracted partnerships with major pharmaceutical manufacturers.
In 2022, Amgen agreed to collaborate on five initial programmes, with an option for five additional programmes, in a deal valued at up to US$1.9 billion.
Novartis followed in 2024 with a separate agreement worth more than US$1 billion to develop protein-based therapeutics.
The Zealand agreement adds obesity and metabolic disease research to Generate’s partnership portfolio as pharmaceutical companies expand their use of AI-driven drug discovery.
For Zealand, the collaboration provides access to a new therapeutic modality while allowing it to retain responsibility for clinical development and commercialisation.
Be the first to leave a comment