In a landmark move, Swiss pharmaceutical giant Roche has signed a $5.3bn licensing deal with Danish biotech Zealand Pharma for the development of petrelintide, a next-generation obesity treatment. The new drug, which is based on the hormone amylin, is designed to help patients feel fuller for longer, potentially offering a more tolerable alternative with fewer side effects compared to current GLP-1-based therapies.
Under the agreement, petrelintide will be developed both as a standalone treatment and in combination with a potential obesity drug from Roche, with both companies sharing profits equally. The treatment, which is expected to be administered as a once-a-week injection, aims to shift the focus in obesity management from rapid weight loss to long-term weight maintenance. Zealand Pharma’s CEO, Adam Steensberg, described the partnership as “transformational,” noting that it could improve patient adherence given that nearly 30% of patients drop off weight-loss therapies early on.
Analysts have estimated the obesity drug market could be worth between $80bn and $140bn, although competitors like Eli Lilly and Novo Nordisk currently dominate the space with drugs such as Mounjaro and Wegovy. Despite the crowded field, Roche sees significant opportunity in offering patients more options. “There is increasing recognition that we need optionality,” said Manu Chakravarthy, head of Roche’s metabolic product development, emphasizing that the combination therapy could benefit patients with severe obesity and related health issues.
Shares in Zealand soared by over 40% following the announcement, while Roche shares also rose by more than 4%, reflecting investor optimism amid a competitive yet promising market. However, some industry experts caution that, despite the potential, the road ahead remains challenging given the crowded clinical landscape and the long development timelines typical of new pharmaceutical therapies.
The deal, which marks a major strategic entry by Roche into the obesity market, is expected to redefine treatment paradigms and offers the potential to significantly impact a market that is witnessing rapid growth amid rising global obesity rates.
