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Roche & Zealand Pharma Secure $5.3 Billion Deal to Tackle Obesity Market
Roche announced that it has entered into an exclusive collaboration and licensing agreement with Zealand Pharma to co-develop and co-commercialize petrelintide, Zealand Pharma’s amylin analog, both as a standalone therapy and in a fixed-dose combination with Roche’s lead incretin asset, CT-388. The Swiss pharmaceutical company revealed that the deal is valued at up to US$ 5.3 billion to develop Zealand Pharma’s obesity drug candidate. The collaboration aims to position the two companies in the rapidly growing weight loss drug market.
Phase 2 Amylin Analog Petrelintide Shows Promise for Enhanced Weight Management and CVRM Treatment
Petrelintide, currently in phase 2 clinical development, is a long-acting amylin analog designed for once-weekly subcutaneous administration. Clinical data indicates its potential to become a best-in-class amylin monotherapy, offering improved tolerability compared to existing weight management treatments and the possibility to expand into related indications.
The combination of petrelintide with Roche’s dual GLP-1/GIP receptor agonist CT-388 aims to strengthen and broaden Roche’s pipeline in cardiovascular, renal, and metabolic (CVRM) diseases. This combination presents an opportunity for superior efficacy while potentially enhancing tolerability.
Teresa Graham, CEO Roche Pharmaceuticals stated, “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 combining petrelintide with 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.”
Profits Split Evenly in U.S. and Europe, with Zealand Earning Tiered Royalties
Roche stated that Zealand Pharma will receive an upfront payment of US$ 1.65 billion, with potential milestone payments increasing the total to US$ 5.3 billion, contingent on phase 3 trial outcomes and sales performance. The collaboration agreement will focus on the co-development and co-commercialization of petrelintide to maximize its potential. Under the agreement, Zealand Pharma and Roche will jointly commercialize petrelintide in the U.S. and Europe, while Roche will have exclusive commercialization rights in other markets. Roche will also handle commercial manufacturing and supply.
Profits and losses for petrelintide and the petrelintide/CT-388 combination will be shared equally in the U.S. and Europe, while Zealand Pharma will receive tiered double-digit royalties of up to the high teens on net sales in other markets. Additionally, Zealand Pharma will pay Roche US$ 350 million, offsettable against milestone payments, for the development of the petrelintide/CT-388 fixed-dose combination and future petrelintide combination products.
Adam Steensberg, President and Chief Executive Officer of Zealand Pharma stated “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.”
Novo Nordisk’s stock dropped 4.3% to 74.73 following the news. Earlier this week, the stock had already declined by more than 9% after its obesity drug, CagriSema, failed to outperform Eli Lilly’s Zepbound in a Phase 3 trial. In parallel, Zealand Pharma continues to test petrelintide in two midstage trials, with plans for a final-phase study in progress.
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