Roche Expands Obesity Drug Portfolio with $5.3B Zealand Pharma Deal

Roche has significantly bolstered its position in the competitive obesity drug market by securing a potential $5.3 billion deal with Danish biotech Zealand Pharma for its experimental amylin analog, petrelintide. The agreement, announced on March 12, 2025, marks Roche's latest strategic move in the rapidly growing obesity treatment sector.

Deal Structure and Financial Terms

The collaboration between Roche and Zealand Pharma involves an upfront payment of $1.65 billion, with $1.4 billion due at closing and an additional $250 million to be paid over the first two anniversaries of the partnership. The deal's total value could reach $5.3 billion, including up to $1.2 billion in development milestones and $2.4 billion in sales-based milestones.

Under the terms of the agreement, Roche and Zealand will share profits and losses equally in the U.S. and European markets. For other regions, Zealand is set to receive tiered double-digit royalties up to high-teens percentage of net sales. The transaction is expected to close in the second quarter of 2025, subject to regulatory approvals and customary conditions.

Petrelintide: A Promising Obesity Treatment

Petrelintide, Zealand's investigational amylin receptor agonist, has shown promising results in early clinical trials. In a Phase Ib study completed in June 2024, the drug demonstrated mean weight loss of 8.6% at 16 weeks, compared to 1.7% in the placebo group. Roche believes petrelintide has the potential to become a best-in-class amylin monotherapy, with improved tolerability compared to current weight management treatments.

The companies plan to develop petrelintide as both a monotherapy and in combination with Roche's existing obesity treatments. Of particular interest is the potential combination with CT-388, a dual agonist of GLP-1 and GIP receptors that Roche acquired through its $2.7 billion purchase of Carmot Therapeutics in December 2023. CT-388 has shown impressive results, with Phase Ib data indicating a 18.8% reduction in body weight versus placebo after 24 weeks.

Strategic Implications and Market Outlook

This deal significantly enhances Roche's position in the obesity drug market, which is projected to reach $100 billion in annual sales. The acquisition of petrelintide complements Roche's existing portfolio and provides an opportunity to develop potentially best-in-class combination therapies.

The move also reflects the growing interest in amylin analogs within the pharmaceutical industry. Just days before the Roche-Zealand deal, AbbVie announced a $350 million licensing agreement with Gubra for its phase 1 amylin prospect.

As obesity continues to be a global health concern, the race to develop effective and tolerable treatments intensifies. With this latest acquisition, Roche aims to position itself as a major player in this lucrative and rapidly evolving market.