Roche and Zealand Pharma Join Forces on Obesity Drug

In the ever-evolving landscape of biotechnology and pharmaceuticals, collaborations often mark the beginning of groundbreaking innovations. Today, March 12, 2025, saw a significant development as Roche and Zealand Pharma announced a global collaboration and license agreement to co-develop and co-commercialize petrelintide, an amylin analog with the potential to become a foundational therapy for weight management. This partnership aims to unlock the full value of petrelintide, redefining the standard of care for people with overweight and obesity by establishing the leading amylin-based franchise.



The collaboration is a strategic move for both companies, each bringing unique strengths to the table. Zealand Pharma, known for its innovative peptide-based medicines, will contribute its expertise in developing petrelintide, while Roche, with its extensive global manufacturing network and commercial reach, will handle the commercial manufacturing and supply. The agreement covers the co-development and co-commercialization of petrelintide as a standalone therapy and in combination with Roche’s lead incretin asset CT-388, a dual GLP-1/GIP receptor agonist.

The financial structure of the agreement is designed to incentivize both companies to achieve clinical and commercial success. Zealand Pharma will receive upfront cash payments of USD 1.65 billion, including USD 1.4 billion due at closing and USD 250 million in anniversary payments over two years. Additionally, Zealand Pharma is eligible for development milestones of USD 1.2 billion, primarily linked to the initiation of Phase 3 trials with petrelintide monotherapy, and sales-based milestones of USD 2.4 billion. Profits and losses for petrelintide and petrelintide/CT-388 will be shared on a 50/50 basis in the U.S. and Europe, with Zealand Pharma eligible to receive tiered double-digit royalties up to high teens percentage on net sales in the rest of the world.

The collaboration between Roche and Zealand Pharma is not just about financial gains; it is about addressing a critical unmet medical need. Obesity is a heterogeneous disease with over 200 related comorbidities, including cardiovascular and metabolic diseases, and is expected to impact over 4 billion people globally by 2035. Petrelintide, currently in Phase 2 clinical development, has shown promising results, with participants losing an average of 8.6% of their body weight over four months. This performance is notable when compared to other therapies in the market, such as Novo Nordisk's cagrilintide, which stimulated weight loss of 6% versus placebo in a similar trial.

However, the road to success is not without challenges. The collaboration faces several potential risks and challenges, including clinical trial risks, regulatory hurdles, market competition, operational issues, and financial uncertainties. Effective management of these risks will be crucial for the financial performance and market positioning of both companies.

In conclusion, the collaboration between Roche and Zealand Pharma on petrelintide is a strategic move that aligns with current market trends and the competitive landscape in the obesity treatment sector. The financial structure of the agreement reflects a strategic alignment of priorities and risk tolerance for both companies, with significant implications for their future growth and innovation strategies. As the collaboration progresses, it will be interesting to see how petrelintide performs in clinical trials and how it fares against competitors in the market.