Obesity drugs are the gold rush of the moment, and the latest prospector just brought a very fancy pickaxe.
Generate Biomedicines Inc. (GENB) and Zealand Pharma A/S announced a strategic partnership Tuesday to develop AI-engineered protein therapies for obesity and other metabolic diseases.
The agreement pairs Zealand Pharma's expertise in metabolic health with Generate's generative artificial intelligence platform to design drugs that target multiple biological pathways. It also expands Zealand Pharma's drug development capabilities beyond peptides and small molecules into protein-based therapies.
Generate Eligible for Nearly $1.2 Billion in Milestones
Under the agreement, Generate will receive $30 million upfront and up to $35 million in early preclinical milestone payments.
The company is also eligible for nearly $1.2 billion in total milestone payments across two initial programs, including potential development, regulatory and commercial milestones. On top of that, Generate could earn tiered royalties on future worldwide net sales of products developed through the partnership. The agreement includes an option to add a third program.
As for who does what: Generate will lead research and drug design through the selection of lead candidates. Zealand Pharma will then oversee clinical development, regulatory approvals and global commercialization.
AI Platform Targets Obesity and Metabolic Diseases
The companies will use Generate's proprietary AI platform, which combines computational protein design with large-scale laboratory testing. The technology aims to develop multispecific protein therapies with biological functions tailored to specific treatment goals.
Zealand Pharma Chief Scientific Officer Utpal Singh said the partnership would complement the company's existing peptide and small-molecule capabilities while supporting its broader metabolic health strategy.
Generate CEO Mike Nally said the companies would first establish desired treatment profiles for the two initial programs. Generate would then use its platform to design candidates that meet those objectives.
The partnership marks Generate's expansion into obesity and metabolic diseases while giving Zealand Pharma access to additional drug development technologies.
Zealand Pharma has more than 25 years of peptide research experience. More than 10 of its drug candidates have entered clinical development, including three in late-stage development.
Generate, founded in 2018, uses machine learning and biological engineering to develop protein-based treatments across multiple therapeutic areas.
GENB Price Action: Generate Biomedicines shares were up 0.86% at $12.36 at the time of publication on Wednesday, according to market data.
