Zealand Pharma and Boehringer Ingelheim Enter Into a Licence and Collaboration Agreement to Advance Novel Compounds to Treat Type-2 Diabetes and Obesity

By Zealand Pharma As, PRNE
Wednesday, June 15, 2011

COPENHAGEN, Denmark and INGELHEIM, Germany, June 16, 2011 -


- Boehringer
Obtains Global Rights to
Dual Agonists, including
ZP2929, Zealand Pharma
Lead Drug Candidate in This

- Zealand Pharma is
Eligibleto Receive Total
Projected Milestone Payments

of up to €376 million for ZP2929


Today, Zealand Pharma (NASDAQ OMX: ZEAL), a Copenhagen based
biopharmaceutical company, and Boehringer Ingelheim, one of the
world’s leading pharmaceutical companies, jointly announced an
exclusive global licence and collaboration agreement for
dual-acting glucagon and GLP-1 receptor agonists for the treatment
of patients with Type-2 diabetes and patients with obesity.

As part of the agreement, Boehringer Ingelheim obtains global
development and commercialisation rights to ZP2929, Zealand
Pharma’s lead glucagon/GLP-1 dual agonist drug candidate. Zealand
Pharma will be responsible for conducting the first Phase I study
with ZP2929 and Boehringer Ingelheim will fund the research,
development and commercialisation of products under the

Depending on the achievement of pre-defined development,
regulatory and commercial milestones, Zealand Pharma is eligible to
receive payments for ZP2929 and may also receive additional
milestone payments if other products covered by the collaboration
are advanced through development. Further, Zealand Pharma is
entitled to tiered royalties that range from high single to low
double digits on global sales of products under the agreement.
Zealand Pharma retains co-promotion rights in Scandinavia.

During the first two years of collaboration, Zealand Pharma is
eligible to receive signature, milestone, and other payments of up
to €41 million including cost reimbursements and including research
funding of up to €4 million. In their research collaboration,
Zealand Pharma and Boehringer Ingelheim will focus on the
characterization, identification and development of additional
glucagon/GLP-1 dual agonists for the exploration of new
indications, formulations and delivery systems.

Commenting on today’s announcement, David H. Solomon,
President and Chief Executive Officer of Zealand Pharma
said:We are extremely pleased to have signed this
licence and collaboration agreement with Boehringer Ingelheim,
which has recently strengthened its commitment to the important
field of diabetes. ZP2929 is one of Zealand Pharma
most innovative peptide drug candidates, having
shown significant pre-clinical promise for patients with
Type-2 diabetes and obesity. Together with Boehringer Ingelheim, we
look forward to advancing the development of ZP2929 into Phase I as
part of our joint efforts to bring novel and better treatments to
the market to help improve the lives of diabetes

Boehringer Ingelheims Corporate Senior Vice
President Medicine, Prof Dr Klaus Dugi,
Our focus to develop innovative diabetes treatments is
reinforced by the in-licensing of a very interesting compound
Zealand Pharma which complements Boehringer
s pipeline in diabetes and metabolic
diseases very well. With our first diabetes treatment linagliptin
recently approved by the FDA, we have a manifest for Boehringer
s own research strength and its capability
to bring novel medication to the patients. We are therefore pleased
to bundle our R&D experience with
Zealand Pharma
for further projects in diabetes and obesity.

Zealand Pharmas financial outlook for

The agreement with Boehringer Ingelheim is expected to
positively affect Zealand Pharma’s revenues and other income by a
total of DKK 150 (€20) million in 2011 but will not change the
guidance on total operating expenses of DKK 170 (€23) million.
Since Zealand Pharma’s revenues stem from activity and success
related milestone payments from partners, Zealand Pharma does not
provide full year guidance on total revenues.

Zealand Pharma Conference call

Today, at 11:00am CET/ 10:00am BST/ 5:00am EST, Zealand Pharma
will host a conference call, where David H. Solomon, President and
Chief Executive Officer, will present this announcement. Mats Blom,
Chief Financial Officer, and Hanne Leth Hillman, Vice President and
Head of IR and Corporate Communications, will also participate in
the call which will include a Q&A session.  The conference
call will be conducted in English and the dial-in numbers are:

Denmark: +45-38-48-75-33

Europe:  +44(0)20-7138 0825

US:  +1-212-444-0481        

Confirmation Code: 4468737

About ZP2929

The biological rationale for developing ZP2929 is based on the
pharmacology of the gut peptide hormone oxyntomodulin.
Oxyntomodulin is released by the L-cells of the small intestine
after meals, and is believed to exert its biological effects by
activating both the glucagon receptor and the GLP-1 receptor. In
humans, this hormone is believed to have multiple beneficial
effects on diabetes and obesity, improving glucose tolerance and
causing substantial weight loss.

ZP2929, which acts on both the glucagon and GLP-1 receptors, has
shown in preclinical studies the ability to achieve glycemic
control while causing significant and sustained weight loss. ZP2929
is being developed for once-daily subcutaneous administration to
improve glycemic control and induce weight loss in patients with
Type 2 diabetes and patients with obesity..

ZP2929 is not part of Boehringer Ingelheim’s strategic Diabetes
alliance with Eli Lilly and Company.

About Zealand Pharma

Zealand Pharma A/S is a public (NASDAQ OMX: ZEAL)
biopharmaceutical company based in Copenhagen, Denmark with a
mature and growing clinical pipeline of innovative peptide based
drugs. The company’s lead product is lixisenatide, a once-daily
GLP-1 in late-stage Phase III development in collaboration with
Sanofi for the treatment of Type-2 diabetes. Zealand Pharma also
has a collaboration with Boehringer Ingelheim covering
glucagon/GLP-1 dual agonists, including ZP2929 for the treatment of
diabetes and obesity, and a license agreement with Helsinn
Healthcare on a clinical stage GLP-2 drug for the treatment of
chemotherapy and radiotherapy induced diarrhea.

Zealand Pharma specializes in the discovery, optimization and
development of novel peptide drugs with favorable therapeutic
attributes, and all drug candidates in its pipeline have been
identified through the company’s own drug discovery activities.
Zealand Pharma’s products target disease areas where existing
treatments fail to adequately serve patient needs and where the
market potential for improved treatments through the use of peptide
drugs is high. For more information please visit href="www.zealandpharma.com/">www.zealandpharma.com

About Boehringer Ingelheim

The Boehringer Ingelheim group is one of the world’s 20 leading
pharmaceutical companies. Headquartered in Ingelheim, Germany, it
operates globally with 145 affiliates and more than 42,000
employees. Since it was founded in 1885, the family-owned company
has been committed to researching, developing, manufacturing and
marketing novel products of high therapeutic value for human and
veterinary medicine.

As a central element of its culture, Boehringer Ingelheim
pledges to act socially responsible. Involvement in social
projects, caring for employees and their families, and providing
equal opportunities for all employees form the foundation of the
global operations. Mutual cooperation and respect, as well as
environmental protection and sustainability are intrinsic factors
in all of Boehringer Ingelheim’s endeavours.

In 2010, Boehringer Ingelheim posted net sales of about 12.6
billion euro
while spending almost 24% of net sales in its largest
business segment Prescription Medicines on research and

For more information please visit href="www.boehringer-ingelheim.com/">www.boehringer-ingelheim.com

For further information, please contact:
Zealand Pharma A/S
David H. Solomon, President and Chief Executive Officer;
Tel: +45-4328-1210 or Mobile: +45-2220-6300

Hanne Leth Hillman, Vice President, Head of Investor Relations and
Corporate Communications;
Tel: +45-8877-3689 or Mobile: +45-5060-3689

Boehringer Ingelheim
Julia Meyer-Kleinmann, Director Corporate Communications,
Boehringer Ingelheim GmbH;
Tel: +49-6132-77-8271, press@boehringer-ingelheim.com


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