Danish pharmaceutical company Zealand Pharma has entered into a multi-target collaboration and licensing agreement with Generate Biomedicines. The deal, announced on October 13, 2026, focuses on utilizing Generate’s generative AI platform to design protein therapeutics for obesity treatment.
Under the terms of the agreement, Zealand Pharma will pay an upfront fee of $30 million. Generate Biomedicines is also eligible for up to $35 million in preclinical milestone payments, with total potential milestone payments reaching approximately $1.2 billion, alongside tiered royalties on net sales.
The partnership initially covers two programs, with an option to include a third. Generate Biomedicines will provide its AI-driven protein design platform, while Zealand Pharma will manage clinical development, regulatory submissions, and global commercialization of the resulting therapeutics.
This collaboration aligns with Zealand Pharma’s Metabolic Frontier 2030 strategy to diversify its portfolio beyond its core peptide focus. Following the announcement, shares of Generate Biomedicines, which went public on February 27, 2026, rose by approximately 5% in after-hours trading.
