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Roche has signed the biggest-ever obesity drug deal with a $5.3bn licensing agreement for a next-generation treatment from Danish biotech Zealand Pharma.
The Swiss pharmaceutical company will collaborate with Zealand on petrelintide, a drug based on the hormone amylin that helps people feel fuller for longer, as it pushes further into the lucrative weight-loss market.
The companies will develop it as a standalone drug and as a combination with Roche’s potential obesity drug, which works in a way more similar to the weight-loss drugs already on the market.
Roche is one of the many pharma groups trying to take a slice of an obesity treatment market that analysts have estimated could be worth between $80bn and $140bn.
Eli Lilly and Novo Nordisk dominate with their drugs Mounjaro and Wegovy respectively, but others are looking to a next generation of drugs. Zealand hopes its drug will have fewer side effects than current treatments, which often cause problems such as vomiting and nausea.
Teresa Graham, chief executive of Roche Pharmaceuticals, said the company was aiming to “transform the standard of care and positively impact patients’ lives”.
In late 2023, Roche signed a deal worth up to $3.1bn for Carmot Therapeutics, which included three potential drugs for obesity and diabetes.
Shares in Zealand have fallen 30 per cent in the past year, partly owing to the FDA calling for the company to do another late-stage trial to confirm the correct dosage for a different drug that it was developing for a rare condition called short-bowel syndrome.
Adam Steensberg, chief executive of Zealand, said the partnership with Roche would be “transformational”.
“With relentless focus on innovation, a global manufacturing network and commercial reach, a complementary portfolio of clinical programmes in obesity, and importantly a shared vision for petrelintide, we consider Roche the ideal partner for Zealand Pharma,” he said.
