Swiss pharmaceutical giant Roche has signed the largest obesity drug licensing deal in history, agreeing to a $5.3 billion collaboration with Danish biotech Zealand Pharma to develop a next-generation weight-loss treatment.
The partnership will focus on petrelintide, a drug based on the hormone amylin, which helps people feel fuller for longer. Roche plans to develop petrelintide as both a standalone treatment and in combination with its own experimental obesity drug, which works similarly to Mounjaro and Wegovy, the blockbuster weight-loss drugs dominating the market.
A Booming Obesity Drug Market
The deal highlights Roche’s aggressive push into a lucrative obesity treatment market, which analysts estimate could be worth between $80 billion and $140 billion in the coming years. The sector is currently led by Eli Lilly and Novo Nordisk, but new players, including Roche, are looking to develop next-generation treatments with fewer side effects such as nausea and vomiting—common issues with existing weight-loss drugs.
“Roche is aiming to transform the standard of care and positively impact patients’ lives,” said Teresa Graham, CEO of Roche Pharmaceuticals.
This marks Roche’s second major move in obesity drug development, following a $3.1 billion deal in late 2023 to acquire Carmot Therapeutics, which included three potential treatments for obesity and diabetes.
A Transformational Deal for Zealand Pharma
The agreement is a significant boost for Zealand Pharma, whose shares have dropped 30% over the past year after the U.S. FDA required additional late-stage trials for another drug it was developing for short-bowel syndrome.
Zealand’s CEO Adam Steensberg called the Roche partnership “transformational,” citing Roche’s global manufacturing network, commercial reach, and shared vision for petrelintide.
“With relentless focus on innovation, a complementary portfolio of clinical programs in obesity, and Roche’s ability to bring therapies to market, we consider them the ideal partner for Zealand Pharma,” Steensberg said.
