The Swiss pharmaceutical giant Roche has entered into a significant licensing agreement with Danish company Zealand Pharma, committing to pay $1.65 billion for rights to an experimental obesity treatment that Zealand began testing in Phase 2b trials last December.
The deal structure includes an upfront payment of $1.4 billion to Zealand, with an additional $250 million in anniversary payments. The total value could reach up to $5.3 billion if certain milestones are achieved. Both companies will share in the commercialization efforts and financial outcomes in the United States and European markets.
This strategic move gives Roche access to an amylin analog drug candidate, expanding its obesity treatment portfolio beyond the assets it acquired through its $2.7 billion Carmot Therapeutics purchase in late 2023. Roche intends to evaluate the newly acquired drug, petrelintide, both as a standalone treatment and in combination with other compounds, including Carmot’s CT-388, which targets GLP-1 and GIP hormones. Zealand may reimburse Roche up to $350 million for combination testing efforts.
The obesity drug market has become increasingly competitive, with analysts projecting annual sales to reach $100 billion. Amylin analogs, which work by stimulating gut hormones that control appetite and blood sugar, represent the latest frontier in obesity treatment development. This deal follows AbbVie’s recent $350 million agreement with Danish firm Gubra for similar technology.
However, the amylin approach has faced some skepticism after Novo Nordisk encountered challenges with its combination treatment CagriSema, which pairs an amylin-targeting agent with Wegovy’s active ingredient. While CagriSema showed improvements over Wegovy alone, it failed to demonstrate superior results compared to Eli Lilly’s Zepbound, which combines GLP-1 and GIP targeting mechanisms.
Despite these concerns, multiple pharmaceutical companies remain invested in amylin-based treatments, including Novo Nordisk, AbbVie, Eli Lilly, AstraZeneca, and startup Metsera. Industry analysts, including William Blair’s Andy Hsieh, suggest that while GLP-1/GIP combinations may offer the most promising broad-spectrum approach to weight loss with manageable side effects, amylin-targeting drugs could still play a valuable role, particularly in combination therapies.
A significant advantage of the Roche-Zealand partnership is Roche’s assumption of manufacturing and supply chain responsibilities. This arrangement addresses potential production challenges that have plagued other obesity drug manufacturers, such as Novo Nordisk and Eli Lilly, who initially struggled to meet surging demand for their products. In comparison, Zealand’s competitor Viking Therapeutics recently had to secure a $150 million manufacturing contract to ensure adequate supply of its experimental treatments.
The collaboration between Roche and Zealand represents another major development in the rapidly evolving obesity treatment landscape, where pharmaceutical companies are actively seeking innovative approaches to address this global health challenge. With Roche’s extensive resources and Zealand’s innovative drug candidate, this partnership could potentially introduce new treatment options for patients struggling with obesity.
Under the agreement, Roche will leverage its manufacturing expertise and global reach while working closely with Zealand to develop and commercialize petrelintide. The companies aim to explore various therapeutic applications, including standalone use and combination treatments, potentially offering new solutions in the expanding obesity medicine market.