Swiss pharma giant Roche partners with Zealand Pharma on new obesity treatment

Roche joins forces with Zealand Pharma in the fight against obesity Keystone-SDA

Roche announced on Tuesday that it has struck an exclusive deal with Denmark’s Zealand Pharma to jointly develop and market petrelintide, a new treatment for overweight and obese patients.

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The Swiss stock exchange reacted positively to the news, with Roche’s share price making significant gains. By 10.18 am, Roche was up 4.2% at CHF309, while the Swiss Market Index (SMI) had risen 1.62%.

Petrelintide, currently in phase 2 clinical trials, is a long-acting amylin analogue from Zealand Pharma that can be injected subcutaneously once a week.

+Roche’s big bet on big diseases

Roche announced that the agreement, with undisclosed financial terms, offers a range of “potentially best-in-class” treatment options. These include both monotherapy and fixed-dose combinations with Roche’s leading incretin, CT 388, according to a press release from the Basel-based pharmaceutical giant.

The collaboration will enhance Roche’s portfolio in cardiovascular, renal and metabolic diseases (CVRM).

‘The combination could have a potential of $5 billion’

“This agreement is logical since Roche only recently entered the CVRM market with the acquisition of Carmot Therapeutics in December 2023. To address the various aspects of this disease and compete effectively with multiple rivals, Roche needs to expand its therapeutic options,” said Vontobel analyst Stefan Schneider.

Schneider predicts Roche will launch its CVRM assets in 2028, with maximum risk-adjusted sales estimated at CHF1.9 billion ($2.1 billion). He recommends buying the stock and sets a price target of CHF320.

Novo’s experience with its weight loss drug CagriSema “shows that developing two drugs with overlapping gastrointestinal side effects and outperforming Lilly’s Zepbound is challenging,” says Marcel Brand, an expert at Zurich Cantonal Bank (ZKB).

If the outcome is positive, “the combination could have a potential of $5 billion, despite price pressures and GLP-1 generics,” he adds, recommending investors to increase their holdings in this stock.

Obesity is a complex disease with over 200 related conditions, including cardiovascular and metabolic diseases. Roche predicts it will affect more than 4 billion people worldwide by 2035.

Translated from French with DeepL/sp

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