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

June 16, 2011

COPENHAGEN, Denmark and INGELHEIM, Germany, June 16, 2011 /PRNewswire/ –

             - Boehringer Ingelheim Obtains Global Rights to glucagon/GLP-1
      Dual Agonists, including ZP2929, Zealand Pharma's Lead Drug Candidate in
                                     This Class
                - Zealand Pharma is Eligible to Receive Total Projected
                                 Milestone Payments
                           of up to EUR376 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 agreement.

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 EUR41 million
including cost reimbursements and including research funding of up to EUR4
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’s 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 patients.”

Boehringer Ingelheim’s Corporate Senior Vice President Medicine, Prof Dr
Klaus Dugi, commented: “Our focus to develop innovative diabetes treatments
is reinforced by the in-licensing of a very interesting compound from
Zealand Pharma which complements Boehringer Ingelheim’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
Ingelheim’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 Pharma’s financial outlook for 2011

The agreement with Boehringer Ingelheim is expected to positively affect
Zealand Pharma’s revenues and other income by a total of DKK 150 (EUR20)
million in 2011 but will not change the guidance on total operating expenses
of DKK 170 (EUR23) 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.

http://www.boehringer-ingelheim.com/news/news_releases/press_releases/2011/1

1_january_2011_diabetes_alliance.html

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

http://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 development.

For more information please visit http://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

SOURCE Zealand Pharma A/S


Source: newswire



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