Zealand Pharma Bets $1.2B on AI-Designed Proteins to Crack Obesity

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Zealand Pharma is partnering with AI drug designer Generate Biomedicines in a deal worth nearly $1.2 billion in milestones, aiming to move beyond peptides into multispecific proteins for metabolic disease. Here's what the deal signals about where obesity drug development is heading next.

Zealand Pharma has spent more than two decades as a peptide shop — small, chemically synthesized chains that have proven extraordinarily productive in cardiometabolic disease. Semaglutide, tirzepatide, and their GLP-1 cousins all share that peptide DNA. But on October 13, the Copenhagen-based company announced it's asking Generate Biomedicines, one of the more technically credible names in generative AI drug design, to help it graduate into a more complex molecular class: multispecific proteins.

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