Zealand Pharma shares surge on obesity drug tie-up with Roche

(Sharecast News) - Zealand Pharma shares surged on Wednesday as it announced a collaboration with Roche on the sale of rights to an obesity therapy in a deal worth up to $5.3bn.

The Swiss pharma giant will pay its Danish counterpart $1.65bn in cash up front and a further $1.2bn in development milestones when late-stage trials begin with a further $2.4bn up for grabs if sales targets are hit.

The two companies will co-develop and co-commercialise in Europe and the US Zealand's petrelintide and combination products with the drug, including a fixed-dose combination product of petrelintide and Roche's CT-388. Roche will be responsible for commercial manufacturing and supply.

Reporting by Frank Prenesti for Sharecast.com