OTR Therapeutics and Zealand Pharma enter multi-program strategic collaboration and license agreement to develop novel therapeutics for metabolic diseases

Rhea-AI Summary

OTR Therapeutics and Zealand Pharma (Nasdaq: ZEAL) announced a multi-program strategic collaboration on December 11, 2025 to discover and develop oral small-molecule therapeutics for metabolic diseases.

Key commercial terms include an upfront payment of USD 20 million to OTR (potentially increasing to USD 30 million), eligibility for preclinical, development, regulatory and commercial milestone payments, a potential total consideration of ~USD 2.5 billion (majority commercial milestones), and tiered single-digit royalties on worldwide net sales. OTR will lead discovery and preclinical work; Zealand will lead clinical development, regulatory submissions, and commercialization worldwide.

Positive

• Upfront payment of USD 20 million to OTR
• Upfront may increase to USD 30 million under conditions
• Potential total consideration of ~USD 2.5 billion
• OTR to lead discovery and preclinical development
• Zealand to lead clinical development and commercialization

Negative

• Majority of the ~USD 2.5 billion tied to commercial milestones
• OTR eligible for only tiered single-digit royalties on sales

Key Figures

Upfront payment USD 20 million Initial upfront from Zealand Pharma to OTR Therapeutics

Conditional upfront max USD 30 million Upfront may increase under pre-agreed conditions

Total potential consideration USD ~2.5 billion Preclinical, development, regulatory and commercial milestones

Royalties Tiered single-digit royalties Royalties on worldwide net sales from collaboration products

Market Reality Check

Volume Volume 0 is below the 20-day average of 2,306 shares ahead of this news. normal

Technical Positioned above 200-day MA, which is at 17.38.

Market Pulse Summary

This announcement outlines a strategic collaboration combining Zealand Pharma’s metabolic expertise with OTR Therapeutics’ oral small-molecule platform, anchored by an upfront payment of USD 20 million and potential total consideration up to USD ~2.5 billion. Most value resides in future milestones and royalties tied to successful development and commercialization. Investors may focus on execution across discovery, preclinical work, and Zealand’s responsibility for clinical development and regulatory submissions when assessing long-term impact.

Key Terms

tiered royalties financial

"plus tiered royalties"

Tiered royalties are a payment structure where the percentage of earnings paid as royalties changes based on different levels of sales or production. For example, a company might pay a smaller percentage on initial sales and a higher percentage as sales increase beyond certain points. This system encourages higher sales by adjusting payments, making it important for investors to understand how revenue sharing may vary as a product or project grows.

commercialization financial

"responsibility for clinical development, regulatory submissions, and commercialization worldwide"

Commercialization is the process of bringing a new product, service, or idea to the market so that people can buy and use it. It involves turning an invention or development into something that is widely available and profitable. For investors, commercialization matters because it signals the transition from development to generating revenue, indicating potential growth and the likelihood of a return on investment.

AI-generated analysis. Not financial advice.

• Collaboration will combine Zealand Pharma's expertise in obesity and metabolic health with OTR Therapeutics' proprietary oral small-molecule platform and strong drug discovery capabilities, to discover and develop novel therapeutics for multiple targets in metabolic diseases
• OTR Therapeutics will receive an initial upfront payment of USD 20 million, which may increase to USD 30 million under certain pre-agreed conditions, and is eligible for potential preclinical, development, regulatory, and commercial milestone payments, for a potential total consideration of up to USD ~2.5 billion, with the majority representing commercial milestones, plus tiered royalties

SHANGHAI, Dec. 11, 2025 /PRNewswire/ -- OTR Therapeutics, a biotechnology company dedicated to transforming early-stage innovations into globally impactful therapies for unmet medical needs, and Zealand Pharma A/S (Nasdaq: ZEAL), a biotechnology company transforming the future of metabolic health, today announce a multi-program strategic collaboration and license agreement to discover and develop novel therapeutics for metabolic diseases.

The collaboration brings together Zealand Pharma's deep expertise in obesity and metabolic health with OTR Therapeutics' proprietary R&D platform, scientific rigor, and unique strengths in speed, efficiency, and quality - supported by strong ties to regional R&D networks - to develop transformative treatment options for millions of people living with metabolic diseases. By pursuing next-generation therapeutics, we will meaningfully expand treatment options.

"We are excited to partner with OTR Therapeutics. The multi-program collaboration will expand our metabolic health pipeline into oral small-molecule therapeutics for targets where we have deep biological expertise, complementing our strong peptide R&D platform," said Utpal Singh, Ph.D., Chief Scientific Officer of Zealand Pharma. "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."

"We are thrilled to partner with Zealand Pharma, a company renowned for its legacy and expertise in metabolic diseases," said Zhui Chen, Ph.D., Founder and Chief Executive Officer of OTR Therapeutics. "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."

Terms of the agreement
Under the terms of the agreement, OTR Therapeutics and Zealand Pharma will co-discover and co-develop innovative therapies for multiple targets in metabolic diseases. OTR Therapeutics will leverage its proprietary discovery platform to lead and conduct research and preclinical development. Zealand Pharma will assume responsibility for clinical development, regulatory submissions, and commercialization worldwide.

OTR Therapeutics will receive an initial upfront payment of USD 20 million, which may increase to USD 30 million under certain pre-agreed conditions, and is eligible for potential pre-specified preclinical, development, regulatory, and commercial milestone payments. The potential total consideration is up to USD ~2.5 billion, with the majority representing commercial milestones. OTR Therapeutics is also eligible to receive tiered single-digit royalties on worldwide net sales of any commercialized products resulting from the collaboration.

About Zealand Pharma A/S
Zealand Pharma A/S (Nasdaq: ZEAL) is a biotechnology company focused on advancing medicines for obesity and metabolic health. Combining more than 25 years of peptide R&D expertise with a proprietary data platform that leverages advanced data‑driven and AI/ML approaches, Zealand Pharma aims to lead a new era in obesity and metabolic health.

To date, more than ten Zealand Pharma‑invented drug candidates have entered clinical development, of which two products have reached the market and three candidates are in late-stage development. The Company has collaborations with global pharmaceutical and biotechnology partners for research, development, and commercialization.

Founded in 1998, Zealand Pharma is headquartered in Copenhagen, Denmark, with a U.S. presence in Boston, Massachusetts. Learn more at www.zealandpharma.com.

About OTR Therapeutics
OTR Therapeutics, launched in March 2025, is a biotechnology company dedicated to transforming early-stage innovations into globally impactful therapies for critical diseases with high unmet medical needs. With a strategic focus on oncology, immunology and inflammation, and cardiometabolic diseases, we discover and acquire distinctive assets in preclinical and early clinical stages, and accelerate their development into differentiated, clinically impactful treatments through our R&D hub built for speed, quality and efficiency. By combining scientific rigor with agile partnerships, we deliver exceptional value to our partners and patients worldwide. From our advanced R&D center in Shanghai's Zhangjiang Hi-Tech Park, we actively collaborate with a network of global partners across the U.S., Europe, and Asia. For more information about OTR Therapeutics, please visit www.otr-tx.com.

View original content:https://www.prnewswire.com/news-releases/otr-therapeutics-and-zealand-pharma-enter-multi-program-strategic-collaboration-and-license-agreement-to-develop-novel-therapeutics-for-metabolic-diseases-302638644.html

SOURCE OTR Therapeutics

FAQ

What did Zealand Pharma (ZEAL) announce on December 11, 2025?

Zealand Pharma announced a multi-program collaboration with OTR Therapeutics to discover and develop oral small-molecule metabolic therapeutics.

How much upfront payment will OTR Therapeutics receive from Zealand (ZEAL)?

OTR will receive an initial USD 20 million upfront, potentially rising to USD 30 million under pre-agreed conditions.

What is the total potential deal value in the Zealand (ZEAL) and OTR agreement?

The agreement includes potential preclinical, development, regulatory, and commercial milestones for a total consideration of up to ~USD 2.5 billion.

Who is responsible for clinical development and commercialization under the ZEAL deal?

Zealand Pharma will assume responsibility for clinical development, regulatory submissions, and worldwide commercialization.

What role will OTR Therapeutics play in the collaboration with Zealand (ZEAL)?

OTR will lead and conduct research and preclinical development using its proprietary discovery platform.

Will OTR receive royalties if a product from the ZEAL collaboration is commercialized?

Yes. OTR is eligible for tiered single-digit royalties on worldwide net sales of any commercialized products.