Zealand Pharma Receives Milestone Payment From Helsinn Healthcare

ZP1846, a Novel GLP-2 Agonist, Continues to Advance in Clinical Development Under Licensing Agreement

COPENHAGEN, December 9, 2010 - Zealand Pharma A/S (NASDAQ OMX: ZEAL) ("Zealand Pharma" or
"the Company"), a biopharmaceutical company dedicated to the discovery and
development of innovative peptide drugs that recently listed on NASDAQ OMX,
today announces the receipt of a EUR 500,000 (DKK 3.73 million*) milestone
payment as part of its license agreement with Helsinn Healthcare for the
development of ZP1846 for the treatment of chemotherapy-induced diarrhoea.
This milestone payment has no impact on the Company's outlook for 2010.

In November 2008, Zealand Pharma out-licensed ZP1846 to
Helsinn Healthcare, a global cancer supportive care company. Helsinn
Healthcare received a worldwide exclusive license to ZP1846 and assumed
responsibility for all further development, regulatory approvals,
manufacturing, marketing and sales of ZP1846. Under the terms of the
agreement, Zealand Pharma will receive development and sales based milestone
payments of up to EUR 140 million, of which EUR 10 million has been received
to date post today's announcement. Zealand will also receive a royalty on
sales. In addition, Zealand Pharma has an option to obtain sales and
marketing rights for the Nordic countries.

ZP1846 is a novel, potent and selective
glucagon-like-peptide-2 ("GLP-2") analog. GLP-2 is a naturally occurring
peptide hormone produced primarily by the small intestine. It is secreted in
response to food ingestion and acts by binding to the GLP-2 receptor, which
is predominantly found in the gastrointestinal tract. GLP-2 plays a key role
in intestinal growth and formation by promoting regeneration of the
epithelial surface in this indication damaged by chemotherapy, the underlying
cause of chemotherapy-induced diarrhoea.

Helsinn Healthcare recently initiated a Phase Ib trial in five
centres in Europe involving colorectal cancer patients following the
completion of a Phase Ia clinical study of ZP1846 by Zealand Pharma in the
United States. The current Phase Ib trial has enrolled and will continue to
enrol colorectal cancer patients until the trial objectives have been met and
valuable dose information for the Phase IIa has been obtained.

David Solomon, President and Chief Executive Officer of
Zealand Pharma, commented: "We are pleased with the development of this
important program with our partner Helsinn Healthcare and encouraged by the
data that has been generated to date, which has concluded that ZP1846 is safe
and well tolerated. We look forward to continuing to work closely together on
the further development of ZP1846, a novel therapy discovered by Zealand
Pharma scientists which has the potential to address a severe unmet medical
need for patients. ZP1846 is related to another GLP-2 compound under
development at Zealand Pharma, ZP1848 for the treatment of Crohn's Disease,
with full rights still with Zealand Pharma A/S."

* Figures converted into Danish kroner as supplementary information,
based on the EUR/DKK exchange rate of EUR 1.00 = DKK 7.4553 on 8 December
2010 (LTM average was 7.45).

About Zealand Pharma A/S

Zealand Pharma is a Danish biopharmaceutical company dedicated
to the discovery and development of innovative peptide drugs. The Company
targets diseases where it believes existing treatments fail to adequately
serve the medical needs of patients and the market potential for improved
treatments through the use of peptide drugs is high.

Zealand Pharma focuses on three therapeutic areas: metabolic
(diabetes and obesity), gastrointestinal and cardiovascular diseases. The
Company's expertise in peptide discovery, optimization and development has
resulted in a strong and growing pipeline of novel peptide drug candidates
with favourable therapeutic attributes.

Since 1999, Zealand Pharma's scientists have built a pipeline
that includes five compounds in clinical development, four of which have been
out licensed, two of these with major pharmaceutical companies
(sanofi-aventis and Helsinn Healthcare). All of Zealand Pharma's compounds
emerged from the Company's own drug discovery.

Zealand Pharma is based in Copenhagen. For more information
please visit the Company's web site: www.zealandpharma.com.

Disclaimer: This document does not contain or constitute an
offer to sell or the solicitation of an offer to buy or subscribe for any
securities in the United States or in any other jurisdiction.

This document is not an offer of securities for sale in the United
States. The securities of Zealand Pharma may not be offered or sold in the
United States absent registration or an exemption from registration. Any
public offering of securities to be made in the United States will be made by
means of a prospectus that will contain detailed information about the
Company and management, as well as financial statements. Zealand Pharma does
not intend to conduct a public offering in the United States.

    For further information, please contact:

    Zealand Pharma A/S
    David Solomon, President and Chief Executive Officer
    Tel: +45-4328-1200

    M:Communications
    Mary-Jane Elliott / Emma Thompson
    Tel: +44-(0)20-7920-2330

For further information, please contact: Zealand Pharma A/S, David Solomon, President and Chief Executive Officer, Tel: +45-4328-1200. M:Communications, Mary-Jane Elliott / Emma Thompson, Tel: +44-(0)20-7920-2330