Swiss pharmaceutical giant Roche (ROG.S) has secured the rights to Zealand Pharma’s (ZELA.CO) obesity treatment candidate, petrelintide, in a strategic collaboration valued at up to $5.3 billion. This deal marks Roche’s intensified push to compete in the rapidly growing weight-loss drug market, currently dominated by Novo Nordisk (NOVOb.CO) and Eli Lilly (LLY.N).
As part of the agreement, Zealand Pharma will receive an upfront payment of $1.65 billion, with additional milestone-based payments potentially bringing the total to $5.3 billion, contingent on late-stage clinical trials and sales performance.
Following the announcement, Zealand’s shares surged by 45% before stabilizing, ultimately trading 28% higher at 1145 GMT. Roche shares also experienced a 5.5% increase.
Petrelintide: A New Player in the Obesity Drug Market
Zealand Pharma is currently evaluating petrelintide in overweight and obese individuals without type 2 diabetes in a mid-stage clinical study. The drug belongs to the class of long-acting amylin analogues, which mimic amylin—a hormone co-secreted with insulin.
While the first wave of obesity medications primarily targeted the gut hormone GLP-1, pharmaceutical companies are now exploring amylin-based treatments for their potential to preserve lean body mass. Novo Nordisk is developing similar next-generation drugs, including amycretin and CagriSema, though recent disappointing trial results for CagriSema have negatively impacted the company’s stock.
Amid skepticism over amylin-based approaches, AstraZeneca (AZN.L) has also entered the space with an obesity drug candidate currently in early-stage trials.
Roche and Zealand Pharma’s Joint Commercialization Strategy
Under the agreement, Roche and Zealand will co-commercialize petrelintide in the United States and Europe, sharing profits and losses equally. Roche will have exclusive commercialization rights in other global markets. Additionally, the two companies will collaborate on a fixed-dose combination of petrelintide with Roche’s own experimental obesity drug, CT-388.
The deal is expected to be finalized in the second quarter of this year.
Roche Expands Its Obesity Drug Portfolio
This partnership is the latest step in Roche’s broader obesity and metabolic disease strategy. In late 2023, Roche acquired drug developer Carmot and estimated that three early-stage obesity and diabetes drug candidates from that acquisition could generate over 3 billion Swiss francs in annual sales.
Manu Chakravarthy, Roche’s head of cardiovascular, renal, and metabolism product development, emphasized the strategic alignment with Zealand Pharma, stating, “It’s a nearly perfect fit for us.” He highlighted Roche’s vision of developing a diversified obesity treatment portfolio tailored to different patient needs, including muscle preservation and severe obesity management.
Zealand Pharma’s CEO, Adam Steensberg, underscored Roche’s growing presence in obesity and cardiometabolic research as a key factor in their decision to collaborate. He reaffirmed Zealand’s commitment to independence, despite speculation about a potential Roche acquisition following the deal’s announcement.
“We have always said our strategy is to grow Zealand and seek true partnerships. That is exactly what we have delivered today,” Steensberg stated.
While Roche declined to comment on acquisition rumors, the partnership signals a significant step forward in the competition for next-generation obesity treatments.
