Roche, Zealand Pharma $ 5.3 billion

Copenhagen, Denmark – Balloon obesity drug market may have a new pretender after Roche I concluded a contract worth $ 5.3 billion for the development of Danish biotechnology Zealand Pharma“New generation” candidate.

The contract, announced in March and closes in the second quarter, means the last offer of the Swiss pharmacist Novo Nordisk AND Eli LillyAfter building a portfolio of obesity treatment in recent years.

Petreliline analogue in Zealand Petrelilinde Amylin can be a resource that distinguishes it. The analogues of the Amylin are a form of treatment for weight loss, which imitates the hormone corrected with insulin in the pancreas to increase satiety. This differs from the currently common GLP-1 obesity drugs, such as Zepbound and Wegova, which imitate incretin hormones produced in the intestines to suppress appetite.

But while the analysts perceived Roche as an early pretender to PetreLintide, both companies insisted that he would under no circumstances end.

“It was a very competitive process, with many sides to the end,” said CNBC David Kendall, medical director in Zealand Pharma.

Early clinical data indicate a comparable reduction in the mass between the analogues of Amylin and GLP-1, but with potentially better tolerance and behavior of lean muscles among the first-currently key points of gluing the industry.

Zealand called Petrelindide possible “Future back therapy” In order to manage weight, while bofa called this “potentially the best in the Amylin class”, a 15-20% phase 3 weight loss as monotherapy.

“Roche was not the only company that saw this attractiveness,” said CNBC Manu Chakravarthy, Global Therapy Area and cardiovascular, kidney and metabolism (CVRM) via video combination.

“These things are never done until the pen hits paper.”

The Roche-Zelandia agreement will see both companies Factor and joint development Petrelinide both as independent treatment and as combo-therapy with the lead lead active Roche CT-388. According to the conditions, Zealand will receive cash in advance of $ 1.65 billion, with the payment potential for a milestone up to $ 5.3 billion, depending on phase 3 attempts and sales development.

This was heralded as a victory for Zealand, and analysts cite strong conditions for less biotechnology. Pharma Zealand shares jumped 38% On the day of the contract, while Roche added about 4%

“We consider it the best scenario for Zealand,” wrote the Bofa Global Research in the note on March 13, the day after the announcement, saying that the contract was marked by all biotechnological boxes for the partnership. The bank also described it as a “positive” for Roche, introducing Amylin into a wider obesity portfolio.

Kendall from Zealand said CNBC with a 50-50 coefficient, the common nature of the partnership was a “important” part of the negotiations that It started seriously in September.

“We pushed tightly on this Co-co”, “said Kendall. “Others could say this, but when the pencil hit the paper, he did not quite read it. We introduce knowledge in PetreLintide, they bring a commercial side.”

There were doubts whether Zealand can achieve its target share in profits after earlier Abbvie Gubra drug obesity License agreement I saw how he agreed to receive certain tanties regarding global net sales. However, both Roche and Zealand insisted that their conditions be a two -way victory.

“It is not that it was a victory for Zealand. It is not distorted on their path or on our path. This is a real partnership,” said Chakravarthy. “When you have real cooperation and even skin in the game, that's where magic happens.”

The company was punished by investors last year after the results of one of these experimental slimming pills, CT-996, was associated with temporary side effects. However, Roche has long insisted to focus Building a slimming therapy packagewith amylin analogues among key goals.

“Although we had a good profile in Incretins, it was also clear that she was heterogeneous in this,” said Chakravarthy. “We asked what we can do for people who want a lower weight loss? Amylin appears at the top. Then we asked what companies work in this space. This assessment led us to Zealand.”

After seven months of negotiations, including with other main pharmaceutical players, both companies finally cited a strong scientific and cultural fit among the key reasons for the contract.

“It boiled down to how we see things scientifically. Can we talk about science about eye to eye.

“Roche was a favorite all the way from a cultural perspective,” said Christina Sonnenborg Bredal, general director in Zealand Pharma.

The race is now to be developed by the drug. Zealand last week He announced the initiation of phase 2B PetreLintide test in overweight or obesity and type 2 diabetes, with results due in the summer of 2026. Then the next phase attempts.

It comes when Novo Nordisk tries to shake negative sentiments after a series Disappointing test results For my own analogue candidate of the Amylin Cagrisema, which combines Cagrilintide with a characteristic semaglutide – an active component of Wegova.

Adam Stensberg, general director of Zealand said CNBC In October, he expected PetreLintide to the market around 2030. This would be much behind the targeted Novo Nordisk schedule in 2026 in order to confirm by Cagrisa regulatory. But with Roche now Zealand said that the schedule could appear.

“Do we do everything in our power to speed up?” Kendall asked. “Yes.”

Despite this, the competition is still heating up in the rapidly developing market of obese drugs. Last month, Eli Lilly said it was Daily Orthodox Orthyroidism Pill He achieved his goals in the first of several late studies, potentially opening the door to more convenient and easier to produce oral weight loss. The ABBVie's Gubra agreement also introduces another pretender to Amylin to the table, although his development remains behind PetreLintide.

Meanwhile, analysts noticed entry barriers for new participants, taking into account the high development costs associated with such drugs and the need to demonstrate additional or better benefits.

“We don't have a lot of luxury to bring it forward,” said Chakravarthy. “We definitely aspire to a shorter horizon.”