Zealand Pharma Expects $400 Million Net Cash Flow from Roche in Fourth Quarter
Key Facts
Zealand Pharma said on November 12 that it expects net cash flow of $400 million from Roche during the fourth quarter of 2026, combining a milestone payment from its partner with a corresponding payment by the Danish company. The incoming payment is $575 million, while Zealand will pay $175 million for its contribution of enicepatide to the combination. The company said on its earnings call that the result was “$400 million net cash.” The announcement coincided with results for the first nine months and an update to its 2026 financial guidance. The companies are also advancing petrelintide in a registrational Phase 3 trial program.
The details of the arrangement show that the expected inflow is not a standalone milestone payment of $400 million, but the net of two separate cash transactions in the fourth quarter. Roche owes $575 million, while the $175 million Zealand will pay is tied to its contribution of enicepatide to the combination. This detail places the cash flow in the context of the collaboration to develop obesity treatments, with both companies participating in the petrelintide program. Zealand had already recorded the $575 million Phase 3 initiation milestone in its nine-month revenue, along with the $125 million first anniversary payment. Collaboration-related payments are intended to fund development of the shared assets as the company continues to meet its milestone obligations.
In parallel, Zealand narrowed its 2026 operating expense guidance, excluding other operating items, to between 2.7 and 3.0 billion Danish kroner, from a previous range of 2.7 to 3.3 billion kroner. The company maintained its full-year collaboration revenue forecast at 4.5 billion Danish kroner. The revision follows revenue of 4.529 billion kroner in the nine months ended September 30, compared with 9.146 billion kroner in the corresponding period of 2025. It also reported profit for the period of 3.469 billion kroner, versus 6.834 billion kroner a year earlier. The figures reflect lower revenue and reported profit for the period, while expected collaboration revenue for the year remains at the announced level.
Cash, cash equivalents and marketable securities totaled 13.509 billion kroner on September 30, 2026, compared with 15.109 billion kroner at the end of 2025. The expected net inflow from Roche in the fourth quarter adds to the liquidity picture presented in the company’s results. According to the interim report, nine-month revenue was based on the Roche collaboration, including the Phase 3 initiation milestone and the annual payment. Roche announced in March 2025 that the agreement gives Zealand the potential to receive total consideration of up to $5.3 billion. This includes $1.2 billion in development milestones and $2.4 billion in sales-related milestones. The agreement also included upfront cash payments of $1.65 billion, comprising $1.4 billion upon closing and $250 million during the first two anniversaries.
Clinically, the registrational Phase 3 program for petrelintide consists of 3 trials and is expected to include about 7,000 participants in total. Results from the Phase 2 ZUPREME-2 trial showed weight loss of up to 9.2% at week 28, alongside an HbA1c reduction of up to 0.65% from a baseline average of 7.7%. Zealand and Roche plan to start the Phase 2 ZYNERGY trial of the fixed-dose petrelintide/enicepatide combination during the fourth quarter of 2026. The trial will include people who are overweight or have obesity. This trial sets another clinical milestone for the partnership in the same period in which Zealand expects the net cash flow.
The company’s fourth-quarter calendar also includes an expected final decision on the EU marketing authorization application for glepaglutide. Zealand also expects to resubmit its dasiglucagon application to the U.S. Food and Drug Administration during the quarter. This means the final months of 2026 bring together regulatory milestones, clinical trials and collaboration-related cash flows from Roche. The partnership program is not limited to petrelintide, as the agreement includes potential development and sales milestones within the announced total consideration. The company is scheduled to publish its fourth-quarter results and 2026 annual report on February 25, 2027.