Swiss pharmaceutical giant Roche (ROG.S) has secured the rights to Zealand Pharma\u2019s (ZELA.CO) obesity treatment candidate, petrelintide, in a strategic collaboration valued at up to $5.3 billion. This deal marks Roche\u2019s intensified push to compete in the rapidly growing weight-loss drug market, currently dominated by Novo Nordisk (NOVOb.CO) and Eli Lilly (LLY.N).<\/p>\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.<\/p>\n
Following the announcement, Zealand\u2019s shares surged by 45% before stabilizing, ultimately trading 28% higher at 1145 GMT. Roche shares also experienced a 5.5% increase.<\/p>\n
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\u2014a hormone co-secreted with insulin.<\/p>\n
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\u2019s stock.<\/p>\n
Amid skepticism over amylin-based approaches, AstraZeneca (AZN.L) has also entered the space with an obesity drug candidate currently in early-stage trials.<\/p>\n
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\u2019s own experimental obesity drug, CT-388.<\/p>\n
The deal is expected to be finalized in the second quarter of this year.<\/p>\n
This partnership is the latest step in Roche\u2019s 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.<\/p>\n
Manu Chakravarthy, Roche\u2019s head of cardiovascular, renal, and metabolism product development, emphasized the strategic alignment with Zealand Pharma, stating, \u201cIt\u2019s a nearly perfect fit for us.\u201d He highlighted Roche\u2019s vision of developing a diversified obesity treatment portfolio tailored to different patient needs, including muscle preservation and severe obesity management.<\/p>\n
Zealand Pharma\u2019s CEO, Adam Steensberg, underscored Roche\u2019s growing presence in obesity and cardiometabolic research as a key factor in their decision to collaborate. He reaffirmed Zealand\u2019s commitment to independence, despite speculation about a potential Roche acquisition following the deal\u2019s announcement.<\/p>\n
\u201cWe have always said our strategy is to grow Zealand and seek true partnerships. That is exactly what we have delivered today,\u201d Steensberg stated.<\/p><\/blockquote>\n
While Roche declined to comment on acquisition rumors, the partnership signals a significant step forward in the competition for next-generation obesity treatments.<\/p>\n","protected":false},"excerpt":{"rendered":"
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