Wedoany.com Report-Dec.13, Zealand Pharma and OTR Therapeutics have entered a strategic collaboration and licensing arrangement focused on identifying and advancing treatments for multiple targets in metabolic disorders.

Zealand Pharma will take on the responsibility for clinical development, regulatory submissions and global commercialisation.

The agreement spans several programs, combining Zealand Pharma's expertise in obesity and metabolic conditions with OTR Therapeutics' research and development platform to meet patient needs in this field.

OTR Therapeutics will conduct discovery and preclinical work using its proprietary technology.

Zealand Pharma will oversee subsequent clinical trials, regulatory approvals, and worldwide marketing efforts.

Zealand Pharma chief scientific officer Utpal Singh stated: "This partnership is an early testament – with more to follow – to the execution of our updated strategy to further strengthen and evolve our platform, broadening treatment options for people living with overweight, obesity and other metabolic diseases.

"We are confident the partnership with OTR Therapeutics will be highly productive in achieving our shared goal of expanding treatment options for people living with metabolic diseases."

Under the terms, OTR Therapeutics receives an upfront payment of $20 million, potentially rising to $30 million upon fulfillment of specified criteria.

The deal encompasses milestone payments tied to preclinical progress, clinical advancements, regulatory achievements, and commercialization stages.

Aggregate potential value for OTR Therapeutics could total $2.5 billion, predominantly from sales-related milestones.

Additionally, OTR Therapeutics qualifies for tiered royalties in the single-digit range on net global sales of any resulting marketed products.

OTR Therapeutics CEO and founder Zhui Chen stated: "This collaboration represents a strong endorsement of our proprietary platform and strategic vision, and our proven ability to drive innovation and deliver quality and speed in execution.

"By combining our strengths in innovative drug discovery and development with Zealand Pharma's deep expertise in the disease area, we are well-positioned to discover potentially transformative therapies for patients worldwide."

In March 2025, Zealand Pharma designated Roche as its partner for developing and commercializing its primary obesity asset, petrelintide, after a comprehensive evaluation process lasting seven months.

This latest alliance underscores Zealand Pharma's commitment to diversifying its pipeline through targeted partnerships, aiming to deliver innovative solutions for metabolic health challenges.