OTR Therapeutics secures up to ~$2.5B deal with Zealand Pharma in multi-target metabolic partnership
On December 11, OTR Therapeutics and Zealand Pharma entered into a multi-program strategic collaboration and license agreement to discover and develop novel therapeutics for metabolic diseases.
This collaboration will fully integrate Zealand Pharma's deep expertise in metabolic health and obesity with OTR Therapeutics' innovative R&D platform, scientific rigor, and unique strengths in speed, efficiency, and high-quality execution—leveraging its strong connections to the local R&D ecosystem. Together, the parties aim to develop transformative treatment options for tens of millions of patients with metabolic diseases. By pursuing next-generation therapeutics, they are committed to delivering clinically meaningful new options for patients worldwide.
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 drug discovery platform to lead and conduct research and preclinical development. Zealand Pharma will assume responsibility for clinical development, regulatory submissions, and commercialization worldwide.
As part of this agreement, OTR Therapeutics will receive an initial upfront payment of USD 20 million, which may increase to USD 30 million upon achieving certain pre-agreed conditions. The company is also eligible for potential preclinical, development, regulatory, and commercial milestone payments, bringing the total potential deal value to approximately USD 2.5 billion, with the majority tied to commercial milestones. Additionally, OTR Therapeutics is eligible to receive tiered royalties on worldwide net sales.
It is worth noting that OTR Therapeutics was founded in March 2025 by Dr. Zhui Chen, Dr. Shannon Chuai, and Dr. Yuan Shi, and successfully completed a $100 million Series A financing in June of this year. The round was backed by True Light Capital (a wholly-owned subsidiary of Temasek), Lilly Asia Ventures (LAV), Pfizer Ventures, and Sirona Capital.