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Zealand Pharma Receives Milestone Payment From Helsinn Healthcare

December 9, 2010

COPENHAGEN, December 9, 2010 /PRNewswire-FirstCall/ –

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

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: http://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

SOURCE Zealand Pharma A/S


Source: newswire



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