Zealand Pharma (a biotechnology company focused on the discovery and development of innovative peptide-based medicines) announced a global collaboration and license agreement with Roche to develop petrelintide, which is Zealand Pharma’s amylin analog with potential as a foundational therapy for weight management while expanding into related indications. And the two companies will co-develop and co-commercialize petrelintide and combination products with petrelintide, including a fixed-dose combination product of petrelintide and CT-388, Roche’s lead incretin asset and potential best-in-class GLP-1/GIP receptor dual agonist.
Zealand Pharma and Roche will co-develop and co-commercialize petrelintide and potential combination products, including a fixed-dose combination product of petrelintide and Roche’s lead incretin asset CT-388. The two companies will co-commercialize petrelintide and other products arising from the collaboration in the U.S. and Europe. Roche obtains exclusive rights to commercialization in the rest of the world. Under the terms of the agreement, Zealand Pharma can participate in up to 50% of commercialization activities in the U.S. and Europe, with opt-out and opt-in rights under certain pre-agreed conditions. And Roche will be responsible for commercial manufacturing and supply.
As part of this deal, Zealand Pharma will receive upfront cash payments of $1.65 billion, including $1.4 billion due upon closing and $250 million over the first two anniversaries of the collaboration. And Zealand Pharma is also eligible for development milestones of $1.2 billion, primarily linked to initiation of Phase 3 trials with petrelintide monotherapy, and sales-based milestones of $2.4 billion, for a total consideration to Zealand Pharma of up to $5.3 billion. Profits and losses for petrelintide and petrelintide/CT-388 will be shared on a 50/50 basis in the U.S. and Europe, and Zealand Pharma is eligible to receive tiered double-digit royalties up to high teens percentage on net sales in the rest of the world.
Zealand Pharma will pay Roche $350 million, offsetable against the development milestone payments, for the petrelintide/CT-388 fixed-dose combination product or next-generation petrelintide combination products being pursued under the collaboration agreement.
The deal’s closing is subject to regulatory approvals and other customary closing conditions. The parties expect that the agreement will close in the second quarter of 2025.
Centerview Partners UK and Goldman Sachs International served as financial advisors to Zealand Pharma. Goodwin Procter LLP and Plesner Advokatpartnerselskab served as legal advisors to Zealand Pharma.
KEY QUOTES:
“We are thrilled to announce this transformational partnership, aiming to maximize the full value of petrelintide to the benefit of people living with overweight and obesity. With relentless focus on innovation, a global manufacturing network and commercial reach, a complementary portfolio of clinical programs in obesity, and importantly a shared vision for petrelintide, we consider Roche the ideal partner for Zealand Pharma. We strongly believe that petrelintide holds potential as a foundational therapy for weight management, addressing unmet medical needs among the majority of people living with overweight and obesity, both as stand-alone therapy and in combination with other agents. This collaboration with Roche is a step change to realize this vision, while solidifying Zealand Pharma as a key player in the future management of obesity.”
- Adam Steensberg, President and Chief Executive Officer of Zealand Pharma
“We are excited to collaborate with Zealand Pharma and develop this promising therapy, which we hope will provide people living with obesity and related comorbidities a new treatment option. We share the vision to develop petrelintide as a future foundational therapy. By adding petrelintide to our Pharmaceuticals portfolio and with our Diagnostics expertise in cardiovascular and metabolic diseases, we are aiming to transform the standard of care and positively impact patients’ lives.”
- Teresa Graham, Chief Executive Officer of Roche Pharmaceuticals
