Roche, Zealand Pharma Stripe 5.3 billion. A drug deals with obesity

Swiss pharmaceutical giant Rosh On Wednesday, she said to make a deal worth up to $ 5.3 billion to develop Danish biotech Zealand formDrugs with obesity, as two firms seek to compete in the developed weight loss market.

In transactions both companies collaborate and collaborate with commercialization Petrel, Zealand Pharma’s Analogue of amilin As a self-therapy as well as a combination with a fixed dose with Rocretin Asset CT-388 leader.

According to the agreement, Zealand Pharma will receive previous cash payments of $ 1.65 billion, with the potential of milestone payments, which reached a total of up to $ 5.3 billion, depending on the test-3 tests, Rosh said in the statement.

Zealand Pharma shares jumped 29% shortly after the announcement and bargained by 27% to 11:25 am in London, and Rosh added 5.4%.

Shares of giant drug drugs Novo nordiskMeanwhile, during the session on Wednesday, 3.9% slipped Eli Lily Abandoned by 1.5% in pre -market trade.

Zealand Pharma CEO and President Adam Stinsberg said CNBC that the transaction showed that two companies were leading into obesity in the future. “

Stinberg said the company has received a “high degree of interest” since launching partnership discussions last year. However he noted that Rosh “today Previous developments Obesity drugs, including the acquisition of GLP-1 Carmot Therapeutics.

“Rosh convinced us that they had the ambitions to take the guide in this therapeutic space,” Stinberg CNBC said through a video call on Wednesday.

He added that the firm is unlikely to cooperate with the Novo or Lilly market leaders, given their focus on the existing GLP-1 drug franchise on the drug Wegovy and Zepbound respectively.

On Wednesday, Bank of America said the Roche partnership was a “best scenario for Zealand”, given the existing work in both GLP-1 and Amilin mechanisms.

The transaction, which is expected to close in the second quarter, see Rosh and Zealand together commercialize Petrelintide in the US and Europe, with two income and losses on 50/50. Rosh, meanwhile, will receive exclusive commercialization rights in the rest of the world.

Zealand Pharma has long been pointed to amiline counterparts as “The next generation” Treatment of weight loss. They work, imitating the hormone that combines with insulin into the pancreas to increase the full. This is different from the GLP-1 agonists, which mimic the hormones formed in the intestine to suppress appetite and regulation of blood sugar.

“Unlike the GLP-1, who make people lose their appetite, Petrelintide can help people feel faster,” Stinberg said.