Roche (RHHBY.US) enters weight loss drug market with $5.3 billion obesity drug deal with Zealand Pharma
1min read Roche is looking to expand its presence in the booming weight loss market through an exclusive collaboration and license agreement with Zealand Pharma, a Danish biotechnology company. Under the terms of the deal, the potential total amount could reach $5.3bn, including a $1.65bn upfront payment, $1.4bn payable upon closing, and $250m in payments over the next two years. In addition, Zealand Pharma will receive $1.2bn in development milestones (mainly related to the start of the Phase 3 trial of petrelintide as a monotherapy), and $2.4bn in sales milestones. The deal is expected to close in the second quarter of 2025.
Under the terms of the agreement, the two companies have signed an exclusive collaboration and license agreement to co-develop and commercialize petrelintide, a long-acting glucagon-like peptide-1 (GLP-1) receptor agonist, and a fixed-dose combination with Roche's leading gut hormone insulinotropic asset, CT-388.
Petrelintide is a long-acting glucagon-like peptide-1 (GLP-1) receptor agonist in Phase 2 clinical development, administered once weekly by subcutaneous injection. Current clinical data suggest it has the potential to be the best-in-class glucagon-like peptide-1 (GLP-1) monotherapy, providing better tolerability than existing weight management treatments, and potentially expanding to related indications. In addition, the combination of petrelintide with Roche's GLP-1/GIP receptor agonist CT-388 will further strengthen and expand Roche's product portfolio in cardiovascular, renal, and metabolic diseases.
Under the agreement, the two companies will co-commercialize petrelintide in the US and Europe, with Roche gaining exclusive commercial rights in the rest of the world. Roche said it will share profits and losses of petrelintide and petrelintide/CT-388 50/50 in the US and Europe.
