Zealand Pharma has entered into a partnership with China’s OTR Therapeutics to develop new drugs for obesity and other metabolic disorders. The agreement, announced Thursday, could be worth up to $2.5 billion depending on the success of the collaboration.
Under the terms of the deal, Zealand will make an upfront payment of $20 million to OTR Therapeutics, which could increase to $30 million if certain conditions are met. OTR is eligible for additional payments tied to preclinical, development, regulatory, and sales milestones that together could total as much as $2.5 billion. The Chinese company will also receive tiered single-digit royalties on global net sales for any product resulting from the partnership that reaches the market.
This move allows Zealand Pharma to expand into oral small-molecule therapeutics while remaining focused on molecular targets where it already has experience. “The agreement is in line with the company’s strategy to bring new treatment options to ‘people who are overweight, with obesity, and other metabolic diseases,’” said Chief Scientific Officer Utpal Singh in a statement.
While specific disease targets were not disclosed, Zealand will use OTR’s proprietary small-molecule platform to advance therapies for several metabolic conditions.
Zealand Pharma has previously secured major partnerships in this field. In March 2025, Roche agreed to pay $1.65 billion upfront and up to $3.6 billion in milestone payments for rights related to petrelintide, an amylin analog being developed for weight loss. Zealand's history in metabolic diseases dates back over a decade; Boehringer Ingelheim began collaborating with Zealand in 2011 on survodutide (formerly ZP2929), a dual-acting agonist targeting GLP-1 and glucagon receptors.
Looking ahead, Zealand expects late-stage topline results from survodutide in early 2026 and Phase II data from petrelintide next year.
On Thursday, during its Capital Markets Day event in London, Zealand outlined its near-term strategy for weight management products and long-term plans to become a leader in metabolic health by 2030. The company aims to launch five products and establish a pipeline of more than ten investigational therapies by that time.
“We are redefining weight management for a new era,” CEO Adam Steensberg said in a statement, “moving beyond the weight loss Olympics toward solutions that support the everyday needs, aspirations, and overall well-being of people living with overweight, obesity, and metabolic imbalance.”
