Zealand Pharma secures US$5.3B deal with Roche for obesity treatment

DENMARK—Zealand Pharma, a Danish biotech firm, has formed a notable partnership with Roche, the Swiss pharmaceutical leader, to advance the development and commercialization of its main obesity drug candidate, Petrelintide.

This collaboration comes after a thorough seven-month search and is worth up to US$5.3 billion. It features an upfront payment of US$1.65 billion along with potential milestone payments tied to the outcomes of Phase III trials and commercial achievements.

The agreement centers on the co-development and co-commercialization of Petrelintide, an amylin analogue, intended for use both as a standalone treatment and alongside other therapies.

One of the first combinations planned pairs Petrelintide with Roche’s promising GLP-1/GIP receptor agonist, CT-388.

Roche acquired this compound through its US$2.7 billion purchase of Carmot Therapeutics, and it has demonstrated impressive results in early clinical trials.

In a Phase Ib study, participants achieved a placebo-adjusted weight loss of 18.8% over 24 weeks.

Currently, CT-388 is undergoing Phase IIb trials targeting obesity in individuals with and without type 2 diabetes.

As part of their partnership, Zealand will invest US$350 million to back the development of the CT-388/Petrelintide combination therapy.

The companies will split profits and losses evenly in the U.S. and Europe, while Zealand will receive tiered royalties on sales in other markets.

This partnership represents Zealand’s entry into the competitive obesity treatment landscape, which is primarily dominated by GLP-1 receptor agonists such as Novo Nordisk’s semaglutide (Wegovy, Ozempic) and Eli Lilly’s tirzepatide (Mounjaro).

Unlike GLP-1 receptor agonists, which primarily work by stimulating insulin secretion and slowing gastric emptying, amylin analogues like Petrelintide act to mimic the hormone amylin, thereby suppressing glucagon secretion, slowing gastric emptying, and restoring leptin sensitivity.

Zealand is hopeful that this distinct mechanism could position Petrelintide as a leading therapy for obesity and diabetes.

Petrelintide is currently undergoing evaluation in the Phase II ZUPREME clinical trial.

Meanwhile, Zealand’s other candidate for obesity treatment, survodutide—a dual agonist targeting glucagon and GLP-1 receptors developed in collaboration with Boehringer Ingelheim—is already in Phase III trials for obesity and metabolic dysfunction-associated steatohepatitis (MASH).

The market for obesity drugs is rapidly evolving, fueled by increasing global obesity rates; according to GlobalData, this market is anticipated to reach US$37.1 billion across major countries by 2031.

Zealand’s CEO, Adam Steensberg, expressed great optimism regarding the partnership, labelling it as “transformational” and highlighting Petrelintide’s potential as a foundational treatment for weight management.

This collaboration not only enhances Roche’s portfolio in addressing cardiovascular, renal, and metabolic diseases, but it also positions Zealand Pharma as a critical player in the future landscape of obesity management.

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