Roche will pay Zealand Pharma up to $5.3 billion to collaborate on the development and commercialization of petrelintide, a promising therapy for obesity. As this drug currently enters phase 2 clinical development, it has demonstrated improved tolerability compared to existing weight management treatments, showcasing its potential not just as a foundational therapy for obesity, but also for expanding into adjacent indications. The terms of the exclusive partnership and licensing agreement indicate that both companies will work together on the standalone therapy and explore combinations with Roche’s CT-388, among other potential treatments.
Notably, the initial combination product will incorporate petrelintide with CT-388, for which Zealand Pharma is slated to pay Roche $350 million due to this collaboration involving Roche’s lead incretin asset. Roche is committing a significant investment to this partnership, with a deal structured to include $1.65 billion in upfront cash, $1.2 billion earmarked for development milestones primarily associated with petrelintide's impending phase 3 trials, and an additional $2.4 billion linked to future sales-based milestones. Responsibility for commercial manufacturing and supply will reside with Roche, while both biotech firms will co-commercialize petrelintide within the US and Europe.
However, Roche retains exclusive commercialization rights elsewhere across the globe. Profit and loss distribution will be equally shared for both petrelintide and the petrelintide/CT-388 combination in the US and Europe, with Zealand Pharma set to receive royalties from net sales in other regions. Roche envisions that this collaboration will enhance its therapeutic portfolio concerning cardiovascular, renal, and metabolic diseases.
The deal is on track to finalize in the second quarter, pending regulatory approvals. “By combining petrelintide with our Pharmaceuticals portfolio and leveraging our Diagnostics expertise in cardiovascular and metabolic diseases, we aim to revolutionize patient care and enhance lives,” stated Roche's Chief Executive Officer, Teresa Graham. “Through our unwavering commitment to innovation, a global manufacturing network, and a complementary portfolio of clinical programs in obesity, Roche is undeniably the ideal partner for Zealand Pharma,” remarked Zealand President and CEO, Adam Steensberg. Following this announcement, Roche shares rose by 4%, while Zealand Pharma's stock surged 25%..